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Home , Agnes Gund, Alice Rivlin, Brookings Institution, Chuck Hagel, Ivo Daalder, James Wolfensohn

Quality Impact Independence

THE 1916–2006 1775 Avenue, NW Washington, DC 20036 Annual Report 2006 www.brookings.edu Robert G. Kaiser, associate editor of , in a 2006 Annual Report review of The Broken Branch, August 13, 2006: “[Thomas Mann of Brookings and Norm Ornstein of AEI] Contents Sen. Chuck Hagel, are members of what, sadly, may be a disappearing breed in Brookings Institution’s Washington: independent-minded, knowledgeable experts 6 10 14 Economic Governance Foreign 90th Anniversary whose concern for process is stronger than their desires for Studies Studies Policy Studies Leadership Forum, ­particular outcomes. . .Their devotion to Congress has won July 28, 2006: them admirers from all points on the political spectrum.” “Brookings has Sen. , on , former Deputy Secretary of been at the center The Hamilton Project State, on the launch of the John L. Thornton Center, of every important launch, April 5, 2006: October 9, 2006: policy debate “[The Hamilton “Jeff Bader’s unsurpassed expertise, insight in this country Project is the] and experience in leading the new John L. for 90 years. . . breath of fresh Thornton China Center, combined with Ninety years after air that I think the Brookings Institution’s commitment, the creation of this town couldn’t come at a more important time in the Brookings needs. . .I am Sino-American relations.” Institution, we glad that live in a different , Nobel Laureate in , October 11, 2006: Brookings has world, but once “I am delighted that Brookings is taking an Global Economy Metropolitan Support for been willing again a world active interest in problems of development and Development Policy Brookings to provide a in transition. . . and the global society. The new Wolfensohn 18 22 26 home for this Center for Development is a very welcome American wonderful move in just the right direction, and it nicely The Brookings Institution leadership is still 9 The Hamilton Project 3 About Brookings effort.” supplements what is happening under the 4 Chairman’s Message 12 Election Reform Project 90 indispensable.” Special Insert new Global Economy and Development 5 President’s Message Program at Brookings.” 17 John L. Thornton China Center 29 International Advisory Council Printing: Jarboe Printing The Century Foundation, The Best and Worst in the Aftermath of Hurricane Katrina, December 25, 2005: Cover Photographs: (front cover) William Bradstreet/Folio, Inc., 32 Honor Roll of Contributors (inside covers) Catherine Karnow/Folio, Inc. 35 Brookings Institution Press “[The Brookings Institution Metropolitan Policy Program Director] Bruce Katz and 38 Financial Summary Copyright ©2006 The Brookings Institution 36 Center for Executive 1775 Massachusetts Avenue, NW his staff have done a tremendous job of documenting the federal response to Hurricane 40 Trustees Washington, DC 20036 Education Telephone: 202-797-6000 Fax: 202-797-6004 Katrina. Their analysis is clear and their recommendations strong and on target.” www.brookings.edu Card Number: 84-641502 The Brookings Institution

he Brookings Institution is a private nonprofit organization devoted to independent research and innovative policy solutions. For 90 years, Brookings has analyzed current and emerging issues and produced new ideas that matter—for the nation and the world. T■ For policy-makers and the media, Brookings scholars provide the highest quality research, policy recommen­ dations, and analysis on the full range of issues. ■ Research at the Brookings Institution is conducted to inform the public debate, not advance a political agenda. Our scholars are drawn from the United States and abroad—with experience in govern- ment and academia—and hold diverse points of view. ■ Brookings’s goal is to provide high-quality analysis and recommendations for decision-makers in the United

Reporters interview Sen. Chuck Hagel of States and abroad on the full range of challenges facing

after his remarks at a Brookings 90th Anniversary A lswang Leadership Forum on U.S. in the

Middle East. Ralph an increasingly interdependent world.  C hair m a n ’s m E s sag e P re s i d e n t ’s m E s sag e

t has been 90 years since Robert S. Brookings founded Amer- s we celebrate the Institution’s 90th anniversary, all of us at Brookings have ica’s pre-eminent policy research organization. He had come been giving fresh thought to the challenge of fulfilling our core mission— to Washington from the Midwest to help the United States policy research that meets the highest standards of quality, independence, government prepare to rescue a world that was aflame in “the and impact—in a rapidly changing political landscape, both in the United Great War.” America was just emerging as a major power at a States and around the world. time when European empires were in decline or on the verge Everything we do at Brookings starts with the proposition that good of disintegration. Three decades later, in the aftermath of World War governance is based on good ideas, respect for facts, rigorous thinking, and civil discourse. III and at the outset of the , Brookings scholars were deeply AAll those values undergird our commitment to nonpartisanship, which we seek to involved in designing the and the . uphold in what we do and in how we do it. We are always on the lookout for ways to Today, the international system faces new challenges. Five years support nonpartisanship—or, in the form it sometimes takes on Capitol Hill, bipartisan- after 9/11, the United States, along with its allies and partners, is ship. With that goal in mind, we entered this year into a partnership with the Center Aisle ­wrestling with a combination of unprecedented dangers and all-too- Caucus, a newly formed effort in the House of Representatives dedicated to encouraging familiar conflicts. The war in entered its third year with no end discussion of national issues across party lines. It was in a similar spirit that our Budgeting to the violence in sight. The has suffered further setbacks for National Priorities initiative—led by Senior Fellow Isabel Sawhill—tackled the prob- to the peace process. The North Korean nuclear test and the Iranian lems posed by the U.S. deficit, and that our scholars testified before Congress more than 40 program to develop a bomb of its own threaten regional peace and times. Meanwhile, joint programs with the Chautauqua Institution and Princeton Univer- the worldwide nonproliferation regime. The public and policy-makers sity’s Woodrow Wilson School have allowed us to broaden the scope of our work and the have woken up to the reality of global warming. constituencies we are reaching. Brookings scholars are intensely engaged on all these issues, con- Brookings prides itself as offering a forum to leaders and commentators from across the ducting cutting-edge research on the problems and developing bold political spectrum. Senators including , Chuck Hagel and Richard Lugar but pragmatic ideas for their solution. No matter what their areas of spoke at Brookings during a pivotal election year. Senator Barack Obama spoke at the expertise, they—like all of us—are aware of the growing importance launches of both the Brookings-AEI Election Reform Project and the Hamilton Project, of China. an economic policy initiative aimed at advancing strategies to restore the nation’s promise Just as the emergence of the United States on the world stage was a of opportunity, prosperity, and growth. Members of both parties in both houses of Congress crucial factor 90 years ago, the rise of China is likely to weigh heavily also sought the advice of Brookings scholars on Iraq, , and . in shaping the geopolitics—and geoeconomics—of the 21st century. This year more than ever before we’ve internationalized our agenda and our outreach. That nation, with a population of more than one-sixth of humanity, We provided a platform to Rodrigo de Rato, managing director of the International Mon- has a surging economy and an increasingly proactive diplomatic strat- etary Fund, to give an important address on , trade, economic growth, and egy. Whether the issue is ensuring energy security, promoting healthy the need for reform of multilateral institutions. He spoke under the auspices of our newest trade, protecting the environment, or preserving peace itself, the futures research program, Global Economy and Development, which is the institutional home for of the American and Chinese people are increasingly intertwined. another exciting new venture, the Wolfensohn Center for Development, created through Having spent much of my career in East Asia and the last several A lswang the generosity of our trustee .

years working in China, I have supported the opening of a new China Ralph We also held the inaugural meeting of our International Advisory Council, which Center, based in Washington but with an office in . While John L. Thornton, Brookings chairman , Brookings president brings together leaders from around the world who will help us chart our course in breaking new ground, the center will uphold our signature standards becoming a truly global research institution. And—thanks to John Thornton—we formally of quality, independence, and impact. launched a new China Center dedicated to understanding the impact of that emerging The China Center joins other innovations of Brookings’s power. 90th-anniversary year: the creation of the Global Economy and Varied and growing as this agenda is, every project we undertake has a common Development Program, the Wolfensohn Center for Development, denominator: the best possible scholars working on the most important challenges facing the Hamilton Project, and the International Advisory Council. These our nation and the world. There is no better example than Bruce Katz, vice president and new ventures will work closely with our other research programs and director of our Metropolitan Policy Program, which is working on the reinvention of local centers to advance Robert Brookings’s original vision for the Insti- governance around the nation and the world. Bruce was this year’s recipient of the presti- tution that bears his name. He knew, and so do we, that being the gious Heinz Award for Public Policy. best American carries with it an obligation to think—and All this would not be possible without the support of our many friends. To all of you, act—globally. thanks—and, since we’re always looking over the horizon at Brookings, here’s to a produc- tive decade that will take us to our Centennial.

  Economic Studies

ounder Robert S. Brookings and his wife, Isabel, financed the Institute of Economics in 1922 as a private institution dedicated to economic research. Decades later, economics remains the keystone of Brookings scholarship, and scholars in the Economic Studies Program produce a steady analysis of the production, distribution, and consump- tion of resources at home and abroad. The 2006 highlights included the launch of the Hamilton Project (see Hamilton, page 9). Brookings economists also continued a long tradition Fof significant contributions to research and policy debates by focusing on new issues, such as the challenges created by Hurricane Katrina, as well as perennial and growing concerns related to health care, tax and fiscal policy, retirement security, persistent poverty, and opportunities for children. Hugh B. Price, former president and chief executive officer of the National Urban League, joined Brookings as a senior fellow. Eco- nomic Studies scholars published more than a dozen new books with the Brookings Institution Press, as well as numerous articles, research presen- tations, op-eds, and testimony. The leadership of Economic Studies passed from Isabel V. Sawhill, who has directed the program since 2003 and remains deeply involved as a senior fellow, to William G. Gale, who became vice president and direc- tor in September. “Under Belle’s leadership, we have had great success in exploring the next generation of economic policies and informing the public of the investments in people and institutions needed to enhance individual opportunities and grow the economy,” Gale said. “We will continue to play a leadership role in drawing public atten- tion to the critical economic issues facing the nation,” said Gale, a Brook- ings fellow since 1992.

Promoting Fiscal Responsibility and Financial Security The Hamilton Project, directed by Senior Fellow Peter Orszag, aims to generate innovative, cutting-edge, and evidence-based policy ideas to William G. Gale, vice president and director of promote economic growth and ensure that American workers and firms Economic Studies, assumes the helm of the program remain competitive in the new global economy. The initiative is founded from Isabel V. Sawhill, who will continue as co-director of both the Center on Children and Families and of the on a belief that economic growth that leaves most Americans behind is

Budgeting for National Priorities Project. Sharon Farmer ultimately unsustainable and that, in many areas, our current policies are  Innovations In Education, Justice eco n o m ic St u d ies year ago, the Brook- Brookings. “His experiences and Equality; revived ings Institution in journalism, the founda- Opportunity, the League’s Aproudly welcomed tion world, and nonprofit landmark magazine; and Hugh Price as a senior organizations will greatly opened the League’s new fellow in Economic Stud- inform our work here.” headquarters on Wall Street before Congress on the impact which advances practical policies paper for the U.S. Department of the last 30 years, U.S. blacks have private insurance programs. ies. A former president Price, whose projects in City. of the reform bill. promoting retirement saving by Labor suggesting policy reforms narrowed the gap in cognitive abil- and CEO of the National at Brookings will include “I’ve been keenly inter- New scholar Price is engaged middle- and low-income Ameri- that would require longer waiting ity with whites. The International Economy Urban League, Price has studying whether there ested and deeply involved in a variety of projects related to cans through rigorous research, periods for benefits after workers Scholars in Economic Studies

made a career of bringing are lessons to be learned in public policy throughout Sharon Farmer improving opportunities and out- outreach, and policy analysis. RSP’s become unemployed, combined Regulatory Policy remained involved in international Hugh Price examines education and real, everyday issues to the from the military for edu- my professional career,” opportunity at a September briefing. comes for disadvantaged youth, automatic 401(k) proposals were with longer eligibility periods after At the AEI-Brookings Joint Center economic issues and cross-national spotlight. At Brookings, he cating young people who Price explained. “For the including the role of the com- included in the pension bill signed benefits begin. This paper also on Regulatory Studies, co-direc- studies in a variety of fields. Senior will use his experience as have dropped out of or last forty years I have dedi- 1994, where he focused on munity in the intellectual and this summer promising millions of proposes “ savings tor Robert E. Litan published scholars Barry Bosworth and Susan an innovator in education disengaged from school, cated my life to advancing improving domestic invest- emotional development of African- U.S. families a better way to save accounts” for each active worker several papers addressing regula- Collins worked with the Center programs to focus on issues believes we must look both the causes of equal oppor- ments in education for at- American children (see Innova- for retirement. Former Housing that might replace current unem- tory reform in financial services for the New Economy of Puerto involving equal opportunity, inside and outside the tunity, civil rights, social jus- risk youth and increasing tions, left box). and Urban Development Secre- ployment benefits. and ways to increase competitive- Rico to organize a research project education, criminal jus- proverbial box for promis- tice, and public education. opportunities for people of Economic Studies also ramped tary Jack Kemp and former Sen. , Brookings guest ness in the real estate brokerage on developing a growth initia- tice, and civil rights. Price ing approaches to tough “The opportunity color. He also served for six up work on health care. Senior John Edwards of North Carolina, scholar, completed the first phase market. Litan, a senior fellow, and tive for the economy, financed by is affiliated with the new domestic problems. to become a senior fel- years as senior vice presi- Fellow Henry Aaron published launched a campaign in conjunc- of a longer-term study on the Ben Klemens, a guest scholar, various groups in Puerto Rico. ­Center on Children and At the Urban League, low here was compelling dent of WNET/Thirteen in a book supporting the claim tion with RSP to promote adop- financing of higher education figured prominently in the emerg- The Economy of Puerto Rico was Families, a fitting home he defined a new mis- because, with its eminent New York, the nation’s larg- that health care rationing may tion of the automatic 401(k) by being carried out jointly with the ing debate over net neutrality and published by the Brookings Press for his well-known work sion and strategic vision, scholars and sterling est public television station. be an unavoidable outcome, as major American corporations. . Senior Fellow ways to improve competition in in June 2006. The scholars hosted on the intersection of tripled the organization’s reputation, Brookings is the Drawing on his journalistic the country grapples with rising Senior Fellow Gary T. Burt- William T. Dickens focused his broad-band services. In the wake events to publicize the research education and community endowment, and launched gold standard among think experience as a past board health costs. Aaron also applied less worked on a multi-year study work on the nature and changes in of Hurricane Katrina, Litan offered findings and discuss the policy rec- achievement. the League’s historic Cam- tanks. I am thrilled with member at The New York the U.S. experience to health care of the U.S. unemployment insur- cognitive ability among black and recommendations to reform the ommendations in Washington and “Hugh brings to Brook- paign for African-American the opportunity to work at Times, he is also the author cost inflation in Japan and China. ance system and has completed a white children, showing that over nation’s patchwork of public and San Juan. n ings a record of stellar Achievement. In addition, Brookings.” of two books, Achievement Gregg Bloche, at Brookings on a Senior Fellow Peter Orszag (left) and former Treasury Secretary leadership,” said former he established a research Before joining the Matters: Getting Your Child Guggenheim Fellowship, examined Hamilton: The Spirit of introduce innovations in economic policy at the April Economic Studies direc- and policy center, the League, Price was vice the Best Education Possible legal and ethical aspects of setting launch of one of Brookings’s newest projects. tor Isabel Sawhill, who National Urban League president of the Rockefeller and Destination: The Ameri- limits on medical care and health Opportunity and Growth recruited Price to join Institute for Opportunity Foundation, from 1988 to can Dream. n promotion. Mark Duggan, a Uni- versity of Maryland professor and uring the turbulent years an economic strategy to restore not equal to the challenges on potential reforms in Medicare, Brookings program explained the one of the top health economists surrounding the birth of our America’s promise of opportunity, we face. Medicaid, and other federal health reasoning behind the group’s far- in the country, joined Brookings Dnation, Treasury Secretary prosperity, and growth. Brookings’s Budgeting for programs. reaching recommendations. Many as a visiting fellow and worked on Alexander Hamilton was a fervent “We aim to bring new ideas, National Priorities Project con- The Fiscal Wakeup Tour of the advisory panel’s recom- Medicaid, drug prices, and other proponent of equal opportunity and based on evidence and experience, tinued to draw public attention to hosted events across the country to mendations reflected proposals put issues. economic growth. As noted in the not ideology and doctrine, into the the critical problems this nation publicize the risks posed by grow- forth by Brookings scholars in the Joshua Epstein, a senior fel- acclaimed biography of Hamilton by national economic debate,” said faces in adopting a responsible fis- ing long-term U.S. budget prob- past—providing another illustra- low in the Center for Social and Ron Chernow, “Hamilton wanted to Peter Orszag, project director and cal policy. Gale and Orszag’s recent lems. Joining Sawhill as tion of the nonpartisan nature of Economic Dynamics, used com- foster the rudiments of a modern Brookings senior fellow. work on fiscal policy shows how speakers on this tour were experts work at Brookings. putational modeling techniques to economy—trade, commerce, banks, At its April launch, the project official budget figures are mislead- from the Concord Coalition, the study such topics as flu epidemics. stock exchanges, factories, and released an agenda-setting white g wan ingly optimistic and how adjust- Government Accountability Office, A Wealth of Social Policy: Epstein directed the development corporations—to enlarge economic paper calling on the nation to A l s alph

ments to those figures demonstrate , and the Children, Health, and Aging of a global epidemic model for opportunity. Hamilton dreamed of a address the country’s large fiscal R a continuing medium-term fiscal Committee for Economic Devel- The year-old Center on Children the National Institutes of Health, meritocracy, not an aristocracy.” imbalances and inadequate invest- across the political spectrum.” idea, proposed by Brookings Senior concern that blossoms into a major opment. and Families—co-directed by and received further funding from It was in the spirit of Alexander ment in key growth-enhancing Since April, the Hamilton Proj- Fellow Jeffrey Kling, would move crisis in the next few decades. The Center, a joint Sawhill and Senior Fellow Ron the and the Depart- Hamilton, truly valuing opportunity areas. ect released a series of discussion the unemployment insurance sys- Senior Fellow is project of the Urban Institute and Haskins—worked with a group of ment of Homeland Security. The and upward mobility, that the Ham- Brookings Institution President papers focusing on four critical tem toward focusing resources on co-editing the third volume in the Brookings, provided timely, acces- experts from around the country main implication of the research ilton Project was launched at the Strobe Talbott said, “As we celebrate investment areas: education and workers re-employed at lower wages Restoring Fiscal Sanity series. While sible analysis and facts about ongo- to identify specific cost-effective thus far is that international travel Brookings Institution in April. the 90th anniversary of Brookings, work; innovation and infrastructure; than in their previous jobs. the first two volumes focused on ing policy debates, including the policies to reduce child poverty. restrictions—if triggered by early Founded with the intellectual we are pleased to be launching this savings and insurance; and effective The Hamilton Project is commit- the 10-year budget outlook and estate tax, the alternative minimum Haskins published the first book detection—can substantially delay and financial support of former new and exciting initiative featuring government. ted to continuing its rigorous eco- the long-term fiscal problems, tax, the national sales tax, and the associated with the center, Work global transmission, affording time Treasury Secretary Robert Rubin, the ideas and proposals of some The project aims to bring new nomic policy thinking and putting respectively, the third volume taxation of health care. Brookings over Welfare: The Inside Story of the to implement direct containment former Deputy Treasury Secretary first-rate economic thinkers. I confi- voices into the policy debate—and forth policy options that spark real focuses on a major component of guest scholar Bill Frenzel, a for- 1996 Welfare Reform Law, on the measures, such as vaccination and , Brookings trustees dently predict that some of the pro- is not afraid of tackling controversial debate. As Sen. Barack Obama of Illi- the long-term deficit, namely fed- mer member of Congress, served 10th anniversary of this landmark quarantine. Glenn Hutchins and , posals that are going to be produced issues. One of its first proposals nois said at the launch, the Hamilton eral health care spending. The vol- on the President’s Advisory Panel change to social policy. Haskins Orszag continued to direct the and other generous supporters, the under the aegis of the Hamilton addressed the issue of how teachers Project is a “breath of fresh air that ume, due in early 2007, will focus on Federal Tax Reform and in a also wrote op-eds and testified Retirement Security Project (RSP), Hamilton Project seeks to advance Project are going to surprise people are hired and evaluated. Another I think this town needs.” n   governance studies Governance Studies

hilanthropist Robert S. Brookings laid the ground- work for what would become the Brookings Institution with an organiza- tion dedicated to bringing the U.S. government’s administrative functions into line with modern business methods. His own work within the gov- ernment during World War I had shown him the need for an independent research institution devoted to solving problems of government and the economy. Today, the Governance Studies Program continues on its tradi- tional mission—the study of political institutions in the United States and Pother democratic societies. This year, the program advanced on several research fronts, ranging from a study of the causes, consequences, and correction of polarized ­politics in the United States, in collaboration with the at , to collaborations with the American Enterprise Institute for Public Policy Research (AEI) on U.S. electoral administration and reform and competition. “Governance Studies continues to do everything it can to raise the public profile of its scholarship, and where appropriate, apply its research findings and scholarly insights to pertinent political issues of the day and to solving the real—not the imaginary—problems of governance,” said vice president and director Pietro S. Nivola. Every scholar devoted substantial time to taking media calls, and ­contributed to Brookings’s steady output of timely publications, such as op-ed pieces, Web-based articles, and white papers. Governance Studies began expanding its electronic outlets, with an Issues in Governance Stud- ies brief series. Such work often received attention in the right places. For example, after Nivola’s publication of a policy brief on federalism, he received acco- lades from the National Conference of State Legislatures. Senior Fellow Emeritus Stephen Hess conducted a widely publicized panel discussion in February after the release of his book Through Their Eyes: Foreign Correspon- dents in the United States (Brookings, 2005). This year’s prestigious Hubert A. Humphrey Award was given to Senior Fellow William A. Galston for his outstanding public service, deep involvement in vital questions of pub- Pietro S. Nivola (center), vice president and director of lic affairs, and the quality and breadth of his scholarship in political science.

Governance Studies, with Brookings Trustee William T. A lswang Coleman (left) and Hugh B. Price at the launch of the Governance Studies scholars interacted directly with policy-makers, in

Brookings-AEI Election Reform Project. Ralph the United States and abroad. Senior Fellow Thomas E. Mann, who has 10 11 U.S. News & World governance studies Report Senior Writer Michael Barone, Jr. (right) considers the intersection between religion and politics with Brookings fellows William A. Galston (left) given congressional testimony sev- looked at party politics. For exam- and E.J. Dionne, Jr. Center on Education Policy, is part eral times, testified before the U.S. ple, Peter Beinart, editor-at-large at of the Governance Studies agenda. House Rules Committee at a hear- , arrived at Brook- The landmark No Child Left ing on reform in March ings as a visiting fellow for the year Behind Act (NCLB), up for revi- 2006. to complete a book on how party sion in 2007, is likely to seek the Sen. Barack Obama (center) of examines election In fiscal 2006, the program politics have affected U.S. foreign conversion of low-performing pub- reform with project co- reached new levels of collaboration policy. Beinart managed a guest- lic schools to charters. The Brown directors Thomas Mann (left) A lswang as scholars advanced their studies of star turn on Comedy Central’s Center, under the direction of and Norm Ornstein.

Ralph Ralph government. In addition to work- Colbert Report, where he discussed Senior Fellow Tom Loveless, began ing with Hoover and AEI, Brook- his book, The Good Fight: Why exploring this proposed remedy, Reforming American Elections ings studied electoral competition Liberals—and Only Liberals—Can and others. he extraordinarily lengthy rately—was seriously thrown into with the . Win the and Make Martin West, a Brookings and controversial resolu- question.” America Great Again, which exam- research fellow, wrote “No Child T tion of the 2000 U.S. The Election Reform Project Focused Research on ines the “liberal’’ and “conservative” Left Behind: How to Give It a presidential election revealed that started tracking action on amend- Polarized Politics approaches to fighting terrorism. Passing Grade,” which shed new our electoral system is in serious ments to the legislation considered Brookings and the Hoover Institu- light on why some state govern- need of reform. Stories of hanging by Congress, and making election- tion assembled scholars and jour- Bridging the ments and groups in society are

chads, overwhelming lines, and related research widely available nalists to assess the phenomenon Congressional Divide r m er on Fa resisting the NCLB experiment,

uncounted votes plagued the vot- to policy-makers at the local, state, of political polarization. Brookings Brookings also rededicated itself S ha r while others support it. At a con- ing public. Congress, responding and federal levels. The project’s convened three major election- to the common goal of reduc- scholar. Galston helped examine tiatives. In February, Mann inaugu- situation. McDonald and Samples ference at the University of Wis - to this problem, passed the Help website, www.electionreform season discussions on the causes, ing political polarization with the the highly ambiguous state of con- rated the Brookings-AEI Election have co-edited The Marketplace of consin, Madison, in February 2006, America Vote Act (HAVA) in 2002. project.org, includes information scope, and significance of the help of the Center Aisle Caucus, stitutional law in presidential war Reform Project before a capac- Democracy: Electoral Competition and Loveless delivered a paper, “The The act provided funding to states on voter registration, technology, widening gulf between “red a bipartisan group made up of powers, while Binder set the his- ity crowd that came to hear Sen. American Politics, published in Sep- Peculiar Politics of No Child Left to replace punch card voting sys- access, early and absentee vot- states” and “blue states.” Democrats and Republicans from torical stage for a panel discussion Barack Obama of Illinois give the tember 2006. Behind.” tems, created the Election Assis- ing, provisional balloting, election The Brookings-Hoover the House of Representatives. on contentious confirmation of keynote speech (see Reforming Governance Studies contrib- The Brown Center held a con- tance Commission, and established administration, and voting integ- investigation of America’s polar- Under the leadership of Reps. Supreme Court justices. Nearly all American Elections, page 12). uted to the mounting worldwide ference in September 2005 on the minimum election standards. rity issues. ized politics began with a March Steve of New York and of the sessions were broadcast live Mann edited The New Cam- interest in questions of federalism. state of mathematics instruction, In January 2006, Brookings Sen. Barack Obama of Illinois 2006 conference that examined Timothy V. Johnson of Illinois and on C-SPAN, and drew extensive paign Finance Sourcebook with Non- Nivola presented “Making Sense and another in January 2006 upon joined the American Enterprise helped inaugurate the AEI-Brook- the national divide, which raises Brookings President Strobe Tal- audiences and commentary. Top- resident Senior Fellow Anthony of Subsidiarity” at the American release of Loveless’s co-edited book, Institute for Public Policy Research ings Election Reform Project by concerns for a democratic and bott, the Center Aisle Caucus and ics this year included the future of Corrado and others (Brookings, Political Science Association’s Getting Right (Brookings, (AEI) in launching the Election delivering the keynote address in accountable government, harms the Brookings agreed to host a series the death penalty, discussed at an 2005). With AEI scholar Norm annual meeting in September 2005). Loveless also held a forum Reform Project. The new project February 2006. quality of deliberation in Congress, of policy discussions to promote a event in September, and the rise Ornstein, Mann also published 2005. The paper received the on Mayor Bloomberg’s educa- will monitor the implementation of “With the resources and the and threatens the independence of more respectful and civil climate in ideological voting on the fed- The Broken Branch: How Congress is Association’s Deil Wright Award tion reforms for HAVA and encourage constructive technology we have available other institutions, from the courts for conducting the nation’s business. eral bench, a panel that included Failing America and How to Get It for the year’s best paper in the and co-sponsored an international changes in the legislation through- today, there’s no imaginable rea- to the media. Members of Congress heard Wheeler and Cass Sunstein, Back on Track (Oxford University field. Nivola continued his exami- research conference on the state out the process. By integrating son why any American should Participants presented six from Mann, an expert on politics nonresident senior fellow and co- Press, 2006).The book discusses nation of better ways of dividing of mathematics education around election-related research, the proj- have problems casting a ballot,” research papers, including one by and governance, and Senior Fellow author of Are Judges Political? some sources of today’s polariza- the respective responsibilities of the world with support from the ect strengthens the link between Obama said. “Unfortunately, as we Nivola and that Sarah A. Binder, who studies con- Binder, who is completing a tion in Congress. the central and local governments National Science Foundation and the research and policy communi- have seen in the last two elections, outlined the problem of a politi- gressional rules and reforms. Brookings book on the politics of At the Cato Institute in March, across a broad range of policy the National Center for Educa- ties. Supported by the John S. this is still not the case.” cally divided country. Senior fellow judicial appointments, published Michael McDonald, a visiting fel- areas, from health care and educa- tion Statistics (NCES). The Brown and James L. Knight Foundation, Strobe Talbott, Brookings E.J. Dionne, Jr., wrote an essay on Judgment Days one of its chapters in the journal low and a professor of political tion to transportation and home- Center, which helped improve the the Election Reform Project is president, noted that as “Brook- the role of religion, and Mann also Brookings held a number of Legislative Studies Quarterly and science at George Mason Univer- land security. Nivola participated National Assessment of Education headed by Brookings senior fellow ings celebrates its 90th anniver- represented Brookings with a paper Judicial Issues Forums, under the received the Jewell-Loewenberg sity, teamed up with Cato scholar in a Brookings event on Hurri- Progress’s (NAEP) math testing Thomas Mann and AEI resident sary, we’ve rededicated ourselves on gerrymandering. stewardship of Nonresident Senior Award for best article. John Samples in a comprehen- cane Katrina, discussing the respec- standards, hosted an international scholar . to making sure that what we do Nivola and David W. Brady, Fellow Stuart Taylor, Jr., who led sive one-day conference on the tive responsibilities of the state, math conference in the fall. Love- “The resolution of the 2000 and how we do it is an antidote deputy director and senior fellow panels of experts addressing major Helping America Vote problems of electoral competi- local, and federal governments. less was selected to join 17 expert presidential election provided to destructive polarization. I’m at the Hoover Institution, are co- legal and judicial debates of the Mann’s ongoing work included tion. Working with some of the panelists on the National Math- millions of Americans with a particularly pleased that we can directors of the project—which is day. electoral campaigning and financ- country’s best political scientists, The Politics of Public Education ematics Advisory Panel to advise national civics lesson,” Mann said. partner with AEI this year to help generously supported by the John The series covered a wide ing, and congressional redistrict- McDonald and Samples are study- Because schools are public bureau- President Bush and Education “What Americans had taken for ensure that future elections are D. and Catherine T. MacArthur range of pertinent topics, and ing. Mann led an event on “The ing why some kinds of U.S. elec- cracies, they, too, are by definition Secretary Margaret Spellings on granted—that those who have a administered consistently with the Foundation and the Rockefeller drew on the expertise of schol- Future of Campaign Finance” and tions have routinely ceased to be political institutions—and as such, the best use of scientifically based right to vote are able to do so, and very highest standards Americans Brothers Fund. ars such as Galston and Binder, an event on redistricting reform competitive contests and what, if the analysis of them, through the research to advance the teaching have their votes counted accu- expect of their democracy.” n Other program scholarship as well as Russell Wheeler, guest after the Ohio and California ini- anything, can be done about the auspices of the Brookings Brown and learning of mathematics. n 12 13 Foreign Policy­ Studies­

he Brookings Institution was founded in 1916, a period of global conflict that shaped the modern world. Today, the world again faces a transition of global proportions. In 2006, under the leadership of vice president and director Carlos Pascual, the Foreign Policy Studies Program was at the forefront of analysis of major foreign policy challenges. “America’s conduct of foreign policy demands that we address new threats and opportunities in a world that is more interdependent, where technology has eclipsed traditional understandings of borders and security,” Tsaid Pascual, former U.S. ambassador to Ukraine and former director of the U.S. State Department’s Office of Reconstruction and Stabilization. The Foreign Policy Studies Program has two core goals: understand- ing the dynamics of world affairs and the challenges they pose to the international community; and influencing policies and institutions across the globe that promote sustainable peace, security, and prosperity. In 2006, Foreign Policy scholars continued to serve as a key resource for the executive branch, Congress, foreign governments, the media, and the public. Scholars shared their expertise in congressional testimony, press briefings, panel discussions, media interviews, opinion articles, books, papers, and reports.

Crisis and Diplomacy in the Middle East Middle East strife escalated substantially as Israel confronted Hezbol- lah in Lebanon. Adding to the region’s instability were Iran’s pursuit of nuclear arms, continued fighting in Iraq, the victory in January in Palestinian elections, and further attempts at Israeli disengagement from the West Bank. Amid these crises, the Saban Center for Middle East Policy provided expert analysis under the guidance of , former U.S. ambas- sador to Israel and former Assistant Secretary of State for Near East Affairs. The Saban Center boasts top analysts Kenneth Pollack, Peter W. Singer, and Tamara Wittes. Pascual and Senior Fellows , Michael O’Hanlon, , and joined in cutting- edge analyses and recommendations to reverse the spiral of insecurity in the Middle East. Carlos Pascual, vice president and director of Foreign

A lswang Policy Studies, and Sen. Richard Lugar of In a series of Brookings lectures, Indyk proposed a strategy for prepare to give remarks at the Brookings 90th

restarting Middle East diplomacy and creating a viable Lebanese state Ralph Anniversary Leadership Forum on Energy Security. 14 15 foreign policy studies China Center Emerges

n 2006, Brook- in the late 1990s leadership, political ings launched the and has since taught reform, and China’s I John L. Thorn- future industry and telecom industry. ton China Center, government leaders at “Based on his committed to peace. Senior Fellows In A Switch in Time: A New Strategy discussion of the U.S.-Republic of published, advised policy-makers, creating a focus for in unique experience in O’Hanlon and Gordon, appear- for America in Iraq, published in Korea alliance. and made presentations on the well-researched and Beijing. China, John Thornton ing in several Brookings forums, February, Pollack offered alterna- regional role of “energy super- creative thinking on Senior Fellow has a keen under- questioned the efficacy of Israel’s tive strategies to U.S. policy on Repairing Transatlantic power” Russia, its role in Europe, U.S. policy toward ­Jeffrey Bader, former standing of that bombing campaign in Lebanon and security, political consolidation, Relations and its relations with its neighbors and understanding Deputy Assistant country’s role in the offered alternatives. In a July brief- management of oil revenues, and Celebrating its third year, the and the United States. of China. Thanks to Secretary of State for world,” said Strobe ing, Pascual and scholars Pollack, economic reconstruction. Brookings Center on the United a generous gift from East Asia and Pacific Talbott, president of Gordon, and Jeffrey A. Bader exam- O’Hanlon, the holder of the States and Europe continued to Engaging and Board Chairman John Affairs, became the Brookings. “And based ined constraints and capabilities to Stein, Jr., Chair in Inter- offer a forum for research, high- In early March, President Bush L. Thornton, the cen- center’s first director. on his experience in manage the nuclear issue with Iran. national Security, is one of Brook- level dialogue, and public debate traveled to India and Pakistan, ter expands the work The center launched the governance of Pascual and Indyk testified before ings’s most sought-after commen- Saban Center director Martin Indyk (left) hosts on how the United States and both part of a region characterized of the China Initiative, with a commitment to American public-policy Congress, respectively addressing tators on national security. In 2006 a September 2006 talk with Iraqi Deputy Prime Europe address global insecurity. by crisis and by promise. Senior begun in 2004 with being the “go-to” place and educational insti- Minister Barham Salih. am Kittn er

reconstruction in Lebanon and he continued to spearhead the Iraq S The center—led by Gordon Fellow Stephen Cohen led an an earlier gift from for research and policy tutions, John also sees Iran’s nuclear ambitions. Index, a nonpartisan, comprehen- between security and develop- China and the world to an audi- from its 2004 inception until this expert panel that examined issues Thornton. His new recommendations to the role that Brook- Brookings focused attention sive assessment that is consulted ment, particularly the manner in ence of tens of millions. year—produced an array of books, that Bush would face when he commitment—$12.5 help U.S. and Chinese ings can play in pro- on strengthening understanding widely by journalists, scholars, and which poverty erodes a nation’s In July 2005, Brookings con- monographs, and articles as well as met with Indian Prime Minister million over five years leaders address long- viding sound analysis and engagement between Mus- other experts, and appears regu- capacity and creates incubators vened a private meeting in Beijing Web-based U.S.-Europe Analysis Manmohan Singh and Pakistani to underpin the work term challenges, such and recommendations lims and non-Muslims at the 2006 larly in . of transnational threats. Singer of senior experts from China, Series. Gordon and deputy direc- President and Army Chief Pervez of the center—is U.S.-Islamic World Forum, which Daalder led a project address- received distinguished honors from Japan, and the United States to tor Jeremy Shapiro convened more Musharraf. expected to provide a brought together more than 180 ing the controversy stirred by the the Robert F. Kennedy Memorial address the deepening chill in than 20 policy roundtables, which U.S. and India relations were magnet for additional world leaders from 38 countries to pre-emptive use of force in Iraq. for Children at War, which explores Sino-Japanese relations. These featured senior policy-makers such bolstered in the spring of 2006 by resources from other discuss issues ranging from the war The Force and Legitimacy in the child soldiers and how this phe- trilateral dialogues—the second as Ambassador R. Nicholas Burns, an agreement for the United States donors. in Iraq to the Danish cartoon con- Evolving International System nomenon threatens the social fab- was held in Tokyo in May 2006— under secretary of state for politi- to sell civilian nuclear technology Thornton, chair- troversy. Held in February in , project conducted workshops ric of countries subjected to it. helped lay the groundwork for a cal affairs; and Javier Solana, Euro- to India. Before and after the deal man since 2003, was , under Singer’s leadership, worldwide on the use of force in limited but discernible warming pean Union high representative for was made, Cohen testified before firmly convinced that the event defined policy agendas response to terrorist threats or the China’s Emergence trend, and will continue in 2007. the common foreign and security the U.S. Senate and House. He policy-makers needed and programs to improve relations proliferation of weapons of mass China, transformed into a major policy. In November 2005 and worked with other India experts, to understand the between the United States and destruction, in humanitarian emer- economic power in the past 20 Addressing Challenges in April 2006, the center organized including Brookings President implications of China’s Brookings chairman John L. Thornton the Islamic world on issues such gencies, or to support democracy. years, continued an ascension that Northeast Asia the semi-annual DaimlerChrysler Strobe Talbott, who in the late emergence as a world A lswang converses with Zhou Wenzhong, the Chinese Ambassador to the United States.

as security, political transition, and will present one of the world’s North Korea’s continued nuclear Forum, which brings together top- 1990s represented the United power. Ralph development. Homeland Security, most complex and vital foreign ambitions, the cross-strait relations level officials, former officials, and States in nonproliferation negotia- “What happens as energy security, for policy-makers in Events and policy forums were Terrorism, and Insecurity policy challenges for years to between China and Taiwan, and analysts from the United States tions with India and Pakistan. in China—now and political and economic China and the United underpinned by outstanding schol- As the nation commemorated come. Through the support of growing tensions between Japan and Europe for in-depth discus- especially in the reform, and China’s States.” arship. Wittes wrote How Israelis the fifth anniversary of the 9/11 Board Chairman John L. Thorn- and China and South Korea have sions of major issues in transatlan- The Situation in Darfur future—is of enor- regional and global One of the first and Palestinians Negotiate: A Cross- terrorist attacks, Brookings led ton, Brookings expanded its China reverberated around the world. tic relations. Roberta Cohen, co-director of mous significance to security interests. activities planned Cultural Analysis of the Oslo Peace research and discussion on the Initiative into the John L. Thorn- Foreign Policy Studies analyzed the Brookings-Bern Project on the United States and Bader’s team of for the center is the Process, which won “The Best of politically charged issue of home- ton China Center, which will be these critical issues through the Russia and Its Neighbors Internal Displacement, focused the rest of the world,” scholars will include planned opening of the Best University Presses: Books land security. In June, Brook- led by Bader (see China Center, Center for Northeast Asian Policy Brookings also turned its attention attention on the Darfur region said Thornton. “We Wing Thye Woo, an the Brookings-Tsing- You Should Know About” award ings hosted a keynote address by page 17). Studies (CNAPS), led by Richard to Russia. Leaders of the world’s of western Sudan. Former U.S. need to understand economist special- hua Center for Joint from the Association of Ameri- Secretary of Homeland Security In April 2006, China’s Presi- Bush, who holds the Michael H. eight global powers gathered in St. Deputy Secretary of State Robert what is happening izing in U.S.-China Research at Tsinghua can University Presses. Daalder Michael Chertoff. In Protecting dent Hu Jintao met with President Armacost Chair in Foreign Policy Petersburg for the first G8 summit B. Zoellick, in a Brookings address, there, and in response, economic relations University. This Beijing and Gordon edited Crescent of the Homeland 2006/2007, Brook- Bush at the . Their Studies. CNAPS welcomed six hosted by Russia, which came as examined the spread of the Darfur we need to make intel- and implications for base will facilitate U.S. ­Crisis: U.S.-European Strategy for the ings scholars reviewed the state of talks focused on security issues accomplished visiting fellows from international concerns arose over disaster into neighboring Chad ligent decisions to the world of China’s and Chinese scholars Greater Middle East, and Jonathan homeland security and presented such as Korea, Iran, and Taiwan; China, Hong Kong, Japan, South Russia’s policies on energy and and current policy options for help assure that the economic growth; Jing working independently Laurence and Justine Vaisse, Brook- recommendations for reforming energy; intellectual property rights; Korea, Russia, and Taiwan who civil liberties. the region. Senior Fellow Cohen, 21st century is one of Huang, who focuses and collaborating ings visiting fellows who co-wrote intelligence, fostering international human rights; currency; and the published independent works. Senior Fellow Clifford Gaddy along with William G. O’Neill, an peace and prosperity on Chinese politics on research into the Integrating Islam: Political and Reli- cooperation, and increasing infra- growing U.S.-China trade defi- Brookings and the Sejong Insti- continued to focus on Russia’s international human rights law- for America.” and security affairs; challenges facing gious Challenges in Contemporary structure and border protection. cit. On the eve of that visit, the tute, an independent Korean think economic and political develop- yer who trained United Nations A former president Erica Downs, who is China’s development France. Scholars continued to analyze Brookings Institution and Phoe- tank, co-hosted the inaugural ment. Gaddy’s recent work on the officers in Darfur, wrote a report, and co-chief operating examining China’s and U.S.-China rela- the roots of terrorism, state capac- nix Satellite Television held the session of the Seoul-Washington political economy of oil and gas in “Protecting Two Million Inter- officer of The Gold- energy needs and link- tions. The project will Iraq and Its Aftermath ity to manage it, and the changing Brookings-Phoenix Forum on Forum in May. The forum, which Russia has attracted the attention nally Displaced: The Successes man Sachs Group, ages to politics and disseminate research Brookings remained on the front- nature of conflict within states. U.S.-China Relations that was featured U.S. Ambassador Chris- of policy circles in Russia and the and Shortcomings of the African Inc., Thornton chaired security, and , findings in Mandarin lines of the reconstruction of Iraq. Rice examined the relationship broadcast throughout mainland topher Hill, stimulated intensive West. Senior Fellow Fiona Hill Union in Darfur.” n Goldman Sachs-Asia an expert on Chinese and English. n 16 17 Global Economy and Development

s the Brookings Institution celebrated its 90th anniversary this year, globalization’s most pressing issues took center stage—from energy security to trade and competitiveness to pandemic disease and poverty. It was fitting that the Institution marked its anniver- sary by launching the Global Economy and Development Program, the fifth major program in Brookings history. The new program will play a key role among global actors, with a robust research portfolio examining the rise of new powers, the factors driving the , and the Aroad out of poverty. In its expansion from Brookings center to program, Global will work with other Brookings research programs to fulfill the Institution’s commitment to building an international team that combines breadth and depth across the full spectrum of global policy issues to advance prosperity, security, and political sustainability worldwide. “Our new program offers compelling recommendations, based on sound research and analysis, in order to materially shape the policy debate on both the opportunities and the challenges created by an increasingly globalized world,” said , vice president and director of the Global program. Brainard, former New Century Chair in International Trade and Economics, holds the Bernard L. Schwartz Chair in International Economics. “We serve as the go-to source for policy-makers on how to harness the power and potential of globalization,” said Brainard, a former deputy national economic adviser.

The Rise of New Powers The rise of economic powers such as the “BRICs” (Brazil, Russia, India, and China) is integral to resolving the key challenges of the 21st century, from energy security to trade and financial imbalances to poverty. Global established research projects to address the rising powers’ internal chal- lenges, undertake comparative cross-country studies, and analyze broader Lael Brainard, vice president and director implications for the world economy and global governance. of the Global Economy and Development In 2006, the India Policy Forum focused on sources of economic Program, discusses U.S. investments in growth, trade liberalization, labor-market institutions, , science and technology with Norman Augustine, retired chairman and CEO and telecommunications services in the world’s second-largest country. of Lockheed Martin, at the Bernard L.

The forum represents an ongoing collaboration between Brookings mendelson matthew Schwartz Forum on Competitiveness. 18 global economy and development McKibbin: Navigating Challenges to the Global Economy arwick J. McKibbin, a Brook- ings non- scholars and Indian colleagues as The Drivers Shaping directs the ’s Ethi- Wresident senior fellow, they analyze trends in the Indian the Global Economy cal Globalization Initiative, and Dr. literally lives and works economy. As President Bush made U.S. Peter Piot, Executive Director of on the other side of the Global welcomed the arrival competitiveness a centerpiece UNAIDS. earth from the Institu- of Wing Thye Woo, an expert on of his agenda, Global addressed With hard-power assets tion’s Washington, D.C., China’s economy and professor America’s role in a fast-mov- stretched thin and facing 21st headquarters. Yet his of economics at the University ing global economy. Finding the century threats from global impact on global issues Former Secretary of State of California-Davis. In collabora- right policy responses to ensure addresses the poverty, pandemics, and terror- such as climate change tion with the Brookings China that the nation remains competi- June Leadership Forum of ism, the United States must deploy and infectious disease is Initiative, Global hosted several tive and prosperous as new giants the Brookings Initiative on its soft power of diplomacy more felt in the United States

A lswang International Volunteering events to illuminate the economic enter the global marketplace is and Service. effectively. To address this prob- as well as in .

challenges facing China’s policy- a high priority for the program. Ralph lem, a joint task force, convened McKibbin, an econo- makers in areas such as rule of law, In April, Brookings launched Global also continued to reduction. Participants shared by the Brookings Institution mist at Australia National intellectual property, and corporate the Bernard L. Schwartz Forum develop a multidisciplinary the results of recent cutting-edge and the Center for Strategic and University in the capital governance. On the eve of Presi- Series on U.S. Competitiveness in research agenda and policy dia- practice that compared social International Studies, brought city of Canberra, visits dent Hu Jintao’s visit to Washing- the 21st Century. The discussion logue on the geopolitical and protection strategies that secure together high-level participants “inside the Beltway” ton, Global, the Brookings Center on U.S. education, innovation, economic ramifications of global the poor against risks with asset- from Congress, the Millennium about three times a year for Northeast Asian Policy Studies, and R&D strategies featured two energy security needs. Warwick J. based strategies that create posi- Challenge Corporation, and influ- when he travels to Brook- and the China Initiative hosted keynote addresses given by Susan McKibbin and Peter J. Wilcoxen, tive opportunities for the poor to ential non-governmental organi- ings for stays of about A lswang Warwick J. McKibbin discusses the potential impact of a flu pandemic.

a discussion on the increasingly Hockfield, the president of Mas- Brookings nonresident senior accumulate financial and human zations that have consulted with two weeks, and he keeps Ralph complicated economic relationship sachusetts Institute of Technol- fellows, used their multi-sector, capital. In August, the Brookings key players for more than a year. in touch through the energy, and environment and other developing should take into account between the United States and ogy, and Bruce Mehlman, former multi-country modeling capability Blum Roundtable examined the Their work and recommendations, Internet on a daily basis. policies. The global gen- countries in a plan to costs as well as benefits. China. Assistant Secretary of Commerce to develop likely scenarios of the impact of extreme poverty with a published in “Security by Other He serves on the Board eral economic equilibrium reduce greenhouse gas McKibbin also pulls no Under the leadership of Senior for Technology Policy under key risks to global energy supplies diverse group of business, govern- Means,” charted the way toward of the Reserve Bank of growth model for India, emissions that will also punches on his research Fellow Erik Berglöf, Chief Econo- President Bush. and their economic consequences ment, and academic leaders, who greater effectiveness, cohesion, and Australia, a body roughly known as “I-Cubed,” is encourage economic on the of mist of the European Bank for Schwartz believes firmly in (see McKibbin, page 21). assembled to promote effective accountability in foreign . The similar to the Federal a simulation model that growth. infectious diseases. He has Reconstruction and Development, “the strengths of the American and concrete proposals to address task force, led by Brainard, released Reserve Board in the can provide future energy “Australia is firmly concluded that a relatively the Global Institute continues to society and its economy, its abil- The Road Out of Poverty these issues as borders matter less comprehensive new recommenda- United States. He is also a and environmental pro- in Asia, and the view of mild influenza outbreak, expand and strengthen its stra- ity to transform science into the To add depth to its policy work than ever. tions designed to reorganize and member of the Australian files. The model also the world from here is similar to Hong Kong tegic alliance of top-level think marketplace, the advantages of its on development effectiveness and Senior Fellow David de Ferranti, reprioritize America’s foreign aid Prime Minister’s Science can be used to assess a quite different than the flu in 1968, might cause tanks in countries such as Russia, free capital markets, its mobility global poverty, Brookings formally former vice president for Latin programs. Engineering and Innova- variety of policies such as view from the United the deaths of 1.4 million China, and India, nurturing young of labor and capital, its intellectual launched the Wolfensohn Center America of the World Bank, led the The Brookings Initiative on tion Council. changing fuel mixes and States and Europe,” said people worldwide and researchers and institutions and property, its inventiveness, and for Development in July 2006. Transparency and Accountability International Volunteering and “I like the Australian taxation, and imposing McKibbin, affiliated with economic losses of $330 promoting important collaborative its resilience.” The forum series The new center, directed by Linn, Project, which builds the capacity Service, spearheaded by visiting lifestyle, and my family emissions constraints. both the Global Economy billion from reduced pro- research and learning. will address U.S. trends regarding was created with the support of for citizens in poor countries to fellows Lex Rieffel and David roots are there,” he said, McKibbin’s wider world and Development and Eco- ductivity. A more severe Scholars Colin Bradford and investments in science and tech- James D. Wolfensohn, the former hold their governments accountable Caprara, held its first large-scale adding, “But nothing can view has led to unique nomic Studies Programs. flu outbreak, such as the Johannes Linn continued their nology, the rise of China and India president of the World Bank and a through local think tanks focusing working meeting, which brought beat being physically at solutions to the issue of While there is a 1918 pandemic, could kill multi-year project examining the as emerging exporters, and the Brookings trustee since 1983. The on budget transparency. together both corporate and gov- Brookings and interacting climate change, where he debate over how much of 144 million people around deficits in current multilateral future of the U.S. manufacturing center will assess how develop- Recognizing that private phi- ernmental sponsors of overseas with my colleagues.” has argued for market- global warming is due to the globe and reduce governance structures. In their industry, and will bring together ment interventions can be success- lanthropy, donations from wealthy volunteering efforts. During the McKibbin, working driven solutions. McKibbin human activity, “there is worldwide economic out- policy brief, “Pragmatic Reform business executives and entrepre- fully implemented, scaled up, and countries, and public-private part- closing plenary session, former with Brookings colleague and Wilcoxen, a Brookings enough respected scien- put by $4.4 trillion. of Global Governance: Creat- neurs, policy-makers, labor leaders, sustained to solve key development nerships are all funding promising Secretary of State Colin Powell Peter J. Wilcoxen, has nonresident senior fellow tific opinion that carbon “The scale of these ing an L20 Summit Forum,” the and academics. challenges at the national, regional, health interventions, de Ferranti delivered remarks on international also been the leader of and an associate profes- emissions might be cre- numbers suggests that pair argued that the G8 summit The ongoing Brookings Trade and global levels. also led a series of panel discus- service and other “soft power” a collaboration between sor at Syracuse University, ating a major problem investment in preventing excludes the emerging powers of Forum, coordinated by Senior Global continued to investigate sions that focused on country-level resources. From personal anecdotes Brookings and the estimate that the fast- that we need to develop another influenza out- the 21st century and has become Fellows and Carol ways to galvanize private sector health reform efforts. The series, to no-nonsense statistics, Secre- Observer Research Foun- growing economies of a policy regime that break might be very well increasingly “ineffective, unrepre- Graham, examined the increasing development in the war against which introduced Brookings’s new tary Powell provided a powerful dation, an India-based China and India already changes the future profile spent,” said McKibbin, sentative, and illegitimate.” Media interdependence of global labor global poverty. Led by visiting global health initiative, also focused endorsement for the Brookings think tank. The Brook- account for roughly 20 of emissions,” he said. “especially investments outlets covered their proposal to markets and the implications of fellow Caroline Moser and on reviewing and analyzing inno- effort to increase dramatically ings-Observer Research percent of the world’s Such a policy regime, he in public health systems expand the group by bringing those trends for workers in both in cooperation with the Ford vative financing proposals, such as the number of Americans who Foundation team is ­carbon emissions. argues, should be flexible in developing countries, leading emerging economies such developed and developing econo- Foundation, Global hosted a the recent airline tax. Project par- volunteer overseas in an effort developing a new compu- Therefore, they so that it can be changed since that is where as Brazil, China, India, Mexico, mies, with a particular focus on conference to discuss asset-based ticipants included former President to use America’s soft power more tational tool to analyze argue, it is critical to as more information another human pandemic and South to the table. migration. approaches to sustained poverty of Ireland Mary Robinson, who effectively. n that country’s economic, engage these two nations becomes available, and is most likely to occur.” n 20 21 The Brookings Institution 90 1916–2006 hen Robert S. Brookings came to Washington to help President Woodrow Wilson in the World War I effort, he led a group of govern- ment reformers in creating the first private organization Wdevoted to the fact-based study of national public policy issues. The new Institute for Government Research became the chief advocate for effective and efficient public service and sought to bring “science” to the study of government. Brookings economists played a large role in craft- ing the 1921 legislation that created the first U.S. Bureau of the Budget. President Warren G. Harding called the bureau, which planned the government’s financial outlays, “the greatest reform in governmen- tal practices since the beginning of the republic.” A decade later, newly elected President Franklin D. Roosevelt asked his old friend Robert Brookings to help design a strategy to lift the nation out of the . As World War II approached, Brookings helped the government mobilize for the conflict. Some scholars joined the military or government in direct efforts, and others remained at the Institution, providing Congress with advice on how to balance the need for soldiers with the demand for civilian workers on the home front. In the aftermath of the war, as the Institution returned to full strength, it threw its weight behind the search for policies that would restore a pros- perous peacetime economy. Brookings also helped shape the Marshall Plan—the groundbreaking relief effort to help Europe. In 1948, the chairman of the ­Senate Foreign Relations Committee, Sen. Arthur ­Vandenberg, praised Brookings for a report that “would become the Congressional ‘work-sheet’ in respect to this complex and critical problem.” “If we can stimulate men to think through these questions of law and Robert S. Brookings, founder – Brookings Institution Archives Sen. Chuck Hagel of Nebraska – Ralph Alswang government and economics and social President Kennedy with Brookings fellows – Brookings Institution Archives Pietro S. Nivola, Brookings vice president – Ralph Alswang relations, we shall do more good to President Franklin D. Roosevelt – Hulton Archive/Getty Images humanity than all the charities.” Barry Bosworth and Susan Collins – Forrest MacCormack Strobe Talbott, Brookings president, and South Korean Foreign Minister —Robert S. Brookings, founder of the Brookings Institution Ban Ki-moon, the newly elected secretary-general of the United Nations – Courtesy of the Ministry of Foreign Affairs and Trade of the Republic of Korea Peter Orszag and Laura D’Andrea Tyson, Brookings trustee – Sam Kittner Former Brookings President Michael Armacost with then United Nations ­Secretary-General Kofi Annan– Brookings Institution Archives 1850 1876 1916 1918 1922 1924 1927 1929 1932 1935 Robert S. Brookings is Isabel Valle January, wife Robert Brookings and his World War I ends Robert Brookings Robert Brookings The Institute for Isabel Brookings Brookings dies Congress passes the born in Cecil County, of Robert Brookings, is colleagues establish the establishes the Institute establishes the Robert Government Research and contributes the money Social Security Act Maryland born in St. Louis, Missouri Institute for Government of Economics Brookings Graduate the Institute of Economics to build Brookings’s new Franklin D. Roosevelt is Research School of Economics and merge with the graduate building on Lafayette elected President Government school to become the Square Brookings Institution AP I mages “You are a national Brookings research provided the basis for how institution, so important President John F. Kennedy organized the State Department, the Agency for International Develop- to at least the executive ment, and the Council of Economic Advisers. As a branch, and I think, the result of this project, magazine referred Congress, and the country, to Brookings as a crucial institution with “experts on that if you did not exist tap” for the government. we would have to ask In the 1970s, Brookings shaped the federal someone to create you.” budget, and explored better ways of providing public services. In 1971, Brookings began a series —President Lyndon B. Johnson, of studies on the federal budget, providing in- ­Brookings 50th Anniversary, depth analysis of various programs that helped September 29, 1966 inform the public and sharpen the spending choices for Congress. Brookings pushed for the creation of the Congressional Budget Office. Alice Rivlin, a distinguished Brookings economist, was the CBO’s first director. She continued to move back and forth between Brookings and the gov- ernment in the years that followed. The 1980s saw a Brookings-based push for com- prehensive reform of the U.S. tax code. Joseph Pech- man, director of the Economic Studies Program at Brookings, conducted research that led to the Tax Reform Act of 1986—a major bill that had a pro- found impact on the U.S. economy. In the 1990s, the federal government devolved many of its social programs back to cities and states, and Brookings shaped a new generation of urban policies to help build strong neighborhoods, cities, and metropolitan regions. As President prepared to sign historic welfare reform legislation, Ron Haskins, a former Republican congressional staffer, and Isabel Sawhill, a former budget official in the Clinton administration’s Office of Management and Budget, teamed up at Brookings to study the nation’s policies for children and families. The ongoing effort to improve the tax system also benefited from work by Brookings economists

President George H. W. Bush greets participants in a Brookings seminar for ­executives – Susan Biddle, The White House “Brookings is one of the oldest and most distinguished Carlos Pascual, Brookings vice president – Sharon Farmer independent public policy think tanks in the United States. All Lyndon B. Johnson with Robert D. Calkins, a former Brookings president – Brookings Institution Archives democracies, especially young ones such as South Africa, must Amy Liu and Myra Dandridge – Ralph Alswang build their own capacity to do the research, analysis and public Michael O’Hanlon – Sharon Farmer Mann and Ornstein – Brookings Institution Archives education to address underdevelopment. We hope to do so in Bernard L. Schwartz and Susan Hockfield, president, Massachusetts Institute partnership with you and others.” of Technology (MIT) – Sharon Farmer President Bill Clinton and Alice Rivlin – Brookings Institution Archives —, former president of South Africa, in a Brookings address, May 16, 2005 Brookings Chairman John L. Thornton and Nelson Mandela – Ralph Alswang 1941 1944 1945 1947 1954 1955 1960 1963 1965 1971 Japan attacks Pearl U.S. and Allied forces World War II ends Marshall Plan aids Supreme Court rules racial Brookings organizes Brookings moves to its John F. Kennedy, 35th Medicare and Medicaid are Brookings publishes Harbor invade Normandy European countries segregation in schools into three present-day present-day location on President, is assassinated established first report on unconstitutional, in Brown research divisions: Lyndon B. Johnson Setting National v. Board of Education Economic Studies, becomes the 36th President Isabel Brookings dies Priorities / Governance Studies, and /

Foreign Policy Studies o n / AP I mages o ught t o rge P erikles o r / Jo rgensen ett y I mages y/G G e G ett y I mages T ime L ife P ictures . V ict S C ecil P ictures L ife & T ime G ett y I mages t L US N av Bill Gale, Mark Iwry, and Peter Orszag. These schol- ars argued that the key to helping Americans save for retirement was making a tax incentive refundable in order to help lower-income workers. The legisla- tion they inspired has helped make them three of the most quoted, and most influential, economists in the United States. The terrorist attacks on September 11, 2001, increased the urgency of developing strategies to address the threat while sustaining America’s role as a force for prosperity and stability abroad and an open society at home. With remarkable speed, Brookings scholars produced influential proposals for home- land security and intelligence operations. They also testified before Congress and used the Institution’s outreach capacity, including its in-house television studio, to explain the new global reality to a fright- ened public. Brookings scholar Michael O’Hanlon, a former congressional defense and foreign policy analyst, spearheaded the Iraq Index project, which provides regular, timely, and influential updates of military and reconstruction efforts. Policy recommendations that come from ­Brookings fellows rise above political partisanship but remain connected to the political realities that policy-makers face. Scholars with executive-branch experience have served in administrations of both “The centrist parties, and those with congressional experience have Brookings worked on both sides of the aisle. At Brookings, Institution was they often work closely together in a spirit of once again the ­nonpartisanship. most widely cited Since 1916, Brookings has been joined by more than 300 other think tanks. Yet it retains a pre- think tank.” eminent role in the public policy debate—uniquely —Annual compilation of independent, unlike other institutions sponsored by quotations from think tank governments, political parties, universities, or corpo- scholars published by news rate interests. reporting, conducted by “Brookings aims to create Fairness and Accuracy in Lael Brainard (center), Brookings vice president with Smita Singh, Hewlett Foundation, and Mary Robinson, former president of Ireland – Daniel Bayer Washington’s first real Delphi— Reporting (FAIR) Sen. Barack Obama, with Peter Orszag (center) and Robert Rubin – a place for probing the hidden Ralph Alswang Brookings President Strobe Talbott and Princeton’s Anne-Marie Slaughter – patterns of modern society Sharon Farmer Robert Litan (right), Henry Aaron (center) and – and assuring the ‘intellectual Brookings Institution Archives preparedness’ of key Americans.” Bruce Katz, Brookings vice president – Las Vegas Sun, R. Marsh Starks Isabel V. Sawhill – Ralph Alswang —TIME Magazine, November 28, 1960 Ron Haskins (left) and William G. Gale, Brookings vice president – Tom Williams Former Secretary of State Colin Powell – Brookings Institution Archives 1974 1985 2001 2002 2004 2005 2006 President Richard M. Brookings inaugurates George W. Bush becomes Strobe Talbott becomes The Center on Urban Hurricane Katrina hits the Brookings celebrates Nixon resigns the new Center for Public the 43rd President the 6th Brookings and Metropolitan Gulf Coast 90th anniversary

Policy Education president Policy becomes the Brookings establishes the Terrorists attack New Metropolitan Policy John L. Thornton China York City and Washington Program Center on Sept. 11 via G ett y

AP I mages The Global Economy and

AA Development Center becomes N O I mages the fifth program at Brookings ett y /G W hitesell G reg I mages “Of the 27 think tanks studied. . . Brookings ranked #1 for credibility.” —“Think Tanks: Who’s Hot and Who’s Not,” The International Economy, Summer 2005 Metropolitan Policy

uring Brookings’s 50th anniversary in 1966, President Johnson praised the study of urban life as an exciting breakthrough in human knowledge that came with its own special chal- lenge: “such a mixture of physical, financial, and psychological questions as to confound the best minds in this nation.” Now celebrating its first decade of operation, the Metropolitan Pol- icy Program embraces the rich mix of issues and disciplines that Johnson found so daunting. D“Our job is to help cities and states understand local complexities and what they mean for reform and action,” said Bruce J. Katz, vice president and director of the program since its founding in 1996 and holder of the Adeline M. and Alfred I. Johnson Chair in Urban and Met- ropolitan Policy. “We take an integrated, holistic approach to dealing with the chal- lenges that leaders face in building metropolitan prosperity,” said Katz, who in 2006 was selected for the prestigious Heinz Award in Public Policy. The Heinz Family Foundation awarded Katz one of the largest individual achievement prizes in the world for championing creative solutions for reshaping and restoring metropolitan areas. In the past year, Metropolitan Policy scholars published 38 research reports; 33 op-eds in publications such as Business Week, The New York Times, The Washington Post, The San Francisco Chronicle, and Detroit Free Press; and delivered 97 speeches across the United States and in the United Kingdom.

Confronting the Catastrophe of Katrina There is no better example of how Metropolitan Policy works than its response to Hurricane Katrina. The program’s reach was wide, with approxinately 1,200 Katrina-related print and broadcast features quoting Brookings scholars in the past year. Bruce Katz, vice president and The program’s extensive—and ongoing—work began with two director of the Metropolitan Policy Program, and Amy Liu, major reports probing the disaster and its implications for families and the deputy director of the program, affected communities. “New Orleans after the Storm,” by Mark Muro, the listen to panelists discuss program’s policy director, described how a series of flawed federal policies

the rebuilding of areas hit by A lswang Hurricane Katrina. exacerbated the catastrophe’s impact and showed how a meaningful recov-

Ralph Ralph ery plan could help the New Orleans region be better than it was before, 22 23 metropolitan policy metropolitan policy

with less racial and economic seg- To monitor the progress of ery Authority. Liu and a group of revitalize 65 “weak market” cit- regation, greater safety and sustain- recovery in the Gulf Coast, the Metropolitan Policy scholars made ies across the country—former ability, and a stronger economy. program created the Katrina Index, multiple trips to the region before industrial areas whose populations “Katrina’s Window: Confront- a monthly digest of economic and presenting a set of future economic have stagnated or declined steadily ing Concentrated Poverty across social indicators of recovery. The and workforce scenarios, along with since World War II. The project has America,” by Fellow Alan Berube regular publication of a selection policy recommendations. benefited from a partnership with and Katz, nationalized the story of these indicators on the op-ed Elsewhere in the country, Met- the School of Economics N Y

and demonstrated that the racial page of The New York Times dem- ropolitan Policy remained deeply , examining policy innovations in and economic segregation exposed onstrated the media’s interest in engaged with state and city leaders, older industrial cities on both sides by the hurricane could be found staying on top of the Katrina story building on its earlier success in of . Traveling frequently

in most major U.S. cities. As a and further positioned Brookings to design compre- r W estcheste to Europe, Katz and his Metro- result of that study, Fresno, Calif., as a leading source of information. hensive approaches to economic politan Policy colleagues brought

convened a citywide anti-poverty The program’s work on Katrina competitiveness in S ummit, home lessons from revitalization task force to address its high level earned Metropolitan Policy deputy and Maine. A policy agenda for programs in places such as Shef- of concentrated poverty. Fresno director Amy Liu a spot on Louisi- strengthening Massachusetts mill field, Belfast, Torino, and Leipzig. was the only city among the 50 ana Gov. Kathleen Babineaux Blan- towns and a strategic plan for L eade r ship o f it largest in the nation exhibiting co’s “dream team” of urban planners, downtown Detroit were two of the Rob Puentes, Metropolitan Policy fellow, Brookings Greater Washington deeper neighborhood poverty than architects, and policy experts assem- many projects that took Metro- addresses the New York Nonprofit The Brookings Greater Washing- Leadership Summit in May 2006.

pre-Katrina New Orleans. bled to advise the Louisiana Recov- politan Policy scholars “beyond the r - Pr N ot-Fo ton Research Program (BGW) Beltway” to meet with local stake- Metropolitan Policy also continued its concentration on key Metropolitan Policy immigration expert Audrey Singer explains policy implication at a Brookings holders from the civic, business, worked to develop innovative urban issues facing the Institution’s briefing on the President’s State of the Union political, and academic sectors. solutions to help advance the eco- hometown. Senior fellow Alice Address. nomic and social well-being of Rivlin, in her role as director Exploring the metropolitan residents, especially of BGW, completed her assign- Diversity of America working families. To boost the ment as co-chair of the District At the national level, the program spending power of such fami- of Columbia’s Comprehensive had a major impact by informing lies, Metropolitan Policy Fellow Housing Strategy Task Force and decision-makers about how the Matt Fellowes looked at an array delivered an extensive set of policy world has fundamentally changed of policy and business responses recommendations on preserving since the Johnson era. William to bring down the higher prices and producing affordable housing. Frey, visiting fellow, in his widely that lower-income households With impressive speed, the Mayor reported “Diversity Spreads Out” often pay for necessities. Cover- and City Council added fund- paper, charted the dispersal of age of his report, “From Poverty, ing to the city’s 2007 budget to Sen. Hillary Rodham Clinton of New York discusses minority populations, including Opportunity: Putting the Market underwrite the implementation of A lswang Brookings research on the “First Suburbs” communities at a February 2006 forum.

immigrants, from their traditional to Work for Lower Income Fami- several main components of the Ralph urban centers to the suburbs and lies,” quickly became the most fre- task force recommendations. Another major focus is reduc- stantial progress in developing economic activity, and small-busi- to rapidly growing job centers in quently emailed item on The New BGW also carried forward its ing the high poverty rate in Wash- new information-based tools and ness credit scoring. It is hosting the South and West. York Times Web site. work with other partners on the ington, D.C. BGW staff developed resources to spur public and pri- the development of the National Equally important were Metro- Senior research associate How- Medical Homes DC project, a proposals to strengthen and reform vate investment in urban markets. Infrastructure for Community politan Policy studies revealing the ard Wial released the first two prod- long-term effort to improve the the job training and education UMI oversaw the develop- Statistics, an Internet-based mar- decline of middle-class neighbor- ucts of the Metropolitan Economy ability of community health cen- system in the city to better serve ment of innovative tools such as ketplace to share thousands of hoods in metropolitan areas. In the Initiative, a multi-year undertak- ters to provide high-quality care to low-income residents and meet the the Housing + Transportation data sources, an effort praised by nation’s older suburbs, meanwhile, ing made possible by a lead grant low-income and uninsured Dis- needs of area employers. These pro- Affordability Index, which helps Chairman Ben Fellow Robert Puentes found that from the John D. and Catherine T. trict residents. BGW’s research has posals are being circulated among communities better understand the S. Bernanke. UMI emerged as an fully one-fifth of America now MacArthur Foundation and addi- documented the health status of community leaders and city officials true costs of sprawl, and intelligent effective advocate before Congress lives in these “inner-ring” com- tional funding from the Ford Foun- low-income District residents and in hopes of moving significant middleware, a tool developed at and the administration on behalf munities and faces a unique set of dation. The initial studies examined the need to develop more capac- numbers of unemployed residents Massachusetts Institute of Technol- of users of federal demographic challenges—such as concentrations manufacturing job loss in the Great ity within the medical safety net. into jobs and career paths, which ogy that allows analysts to inte- and economics statistics on cities of elderly and immigrant popula- Lakes region and the role of “clus- Its work also is underpinning the promise steady income. grate multiple datasets. and neighborhoods; for example, tions as well as outmoded housing ter” strategies in regional economic development of a citywide com- UMI is actively incubating it played an active role in educat- and commercial buildings—vastly development. munity health worker program to Urban Markets Initiative new information-based initiatives ing Congress about the impor- A lswang different from those of the center Metropolitan Policy also better link medically underserved In the past year, the Urban Mar- in the realms of retail and com- tance of adequate funding for the

Ralph Ralph city and fast-growing newer places. launched an initiative to help residents with primary care services. kets Initiative (UMI) made sub- mercial development, informal Census Bureau. n 24 25 Support for Support for Brooking s Brookings Investing in Impact

n its 90th anniversary, the Brookings Institution is grateful to the generous individuals, corporations, and foundations whose support created the Institution, and for those who continue to support its independent research and innovative policy solutions. Each gift helps enable Brookings to inform the public debate and provide high-quality analysis and recommenda- tions for decision-makers in the United States and abroad. Ninety years ago, Robert S. Brookings aspired to create an insti- Otution that would provide unbiased information to guide policy- makers through their toughest decisions. Others who became finan- cial investors in the new organization shared his goal. Corporations and philanthropic foundations soon joined these individuals to pro- vide the resources to build an enduring research institution. Started with a grant of $160,000, the Brookings Institution has grown to an annual budget of more than $50 million. Early funding for the organization’s programs came from the Carnegie Corpora- tion, the , and the . These supporters and many more continue to collaborate with the Institu- tion today. As the Brookings Institution neared its 50th anniversary in 1966, a major gift established an endowment to ensure that it would be able to maintain itself independently. Today, the Brookings endowment has grown to $253 million, providing approximately 25 percent of the Institution’s annual budget. Brookings must raise the balance of its annual budget from individuals, corporations, and foundations that share our commitment to finding innovative, practical solutions to pressing public policy challenges. Linda Steckley, vice president of development, Brookings is guided by a commitment to quality, independence, addresses Brookings Trustees and members of the International Advisory Council, as IAC member Frank and impact. To maintain quality, the Institution must attract and Lowy of Westfield Holdings looks on. retain the best scholars. To maintain independence, decisions on the right questions to ask and the right way to arrive at the answers must always remain in the hands of the scholars. To maintain impact, the Institution must reach out strategically to influential audiences in the policy-making community, the media, and the private sector, at a time of increasing competition from a proliferation of news outlets A lswang

and the establishment of numerous new think tanks. Ralph 26 27 Support for Brooking s International Advisory CouncilSupport for Brooking s he International policies are received. of National Intelligence John Group of Companies, Katsuhiro Nakagawa, Vice Advisory Council Chaired by Brookings Negroponte. Venezuela Chairman, Toyota Motor T (IAC) was estab- Trustee Antoine van Agt- Ricardo Claro, Chairman, Corporation, Japan lished to help Brookings mael, the Brookings Inter- Compañía Sud Americana Hutham Olayan, President & Brookings carefully balances Individuals, and Community This interaction between agenda. Council members actively create a meaningful dialogue national Advisory Council International Advisory de Vapores, Chile CEO, Olayan America Cor- its funding to respond to cur- and Business Leaders, Actively Council members and Brook- participated, posing questions with international business held its inaugural meeting in Council Members Victor Fung, Chairman, Li & poration, originally from rent events and undertake long- Engaged in Brookings ings scholars was highlighted and offering their own informed leaders, extend its outreach Washington, May 8–9, 2006. Antoine van Agtmael, Fung Limited, Hong Kong Saudi Arabia term research projects. As new The Brookings Council brings at the 2006 Annual Brookings responses, and giving Brookings and relevance to other coun- The goal of the meeting was ­President & CIO, Kazuo Furukawa, President, , Founder, challenges emerge, friends of together a select group of thought- Council Forum in New York. The scholars a chance to hear what is tries, and increase its ability to sort through conflict- Emerging Markets Hitachi, Ltd., Japan Interpipe Group, Ukraine the Institution generously con- ful business and community leaders topic, “Strengthening American on the minds of Council members to inform the American pub- ing political and economic Management, LLC, Sheikh Hamad Bin Jassim Marco Tronchetti Provera, tribute to make new research who are actively engaged in the life Leadership and Competitive- and reply with up-to-the-minute lic and policy-makers about signals and make sense of Chairman Bin Jabr Al-Thani, First Chairman & CEO, Pirelli possible, while flexible funding of the Institution, and who get a ness,” brought together some of analysis. perceptions in other parts an interdependent world at Roger Agnelli, Managing Deputy Prime Minister and S.p.A., Italy from unrestricted contributions first look at Brookings research on Brookings’s leading experts to The Brookings Council com- of the world. The members— a complex time. The found- President, Companhia Vale Foreign Minister, Qatar Itamar Rabinovich, Presi- and the endowment enable rapid a wide range of urgent issues. discuss one of the most challeng- prises more than just donors; they leaders in their industries ing members of the IAC do Rio Doce, Brazil Nemir Kirdar, President & dent, University, responses to developing issues. Members of the Council are ing topics facing the U.S. today. are supporters with a shared inter- who represent 18 countries interacted with Brookings Mukesh Ambani, Chairman, CEO, Investcorp, United Israel The corporations, individuals, and invited to attend events in cities The open discussion, moderated est in the advancement of inde- on five continents—are scholars, trustees, and key Reliance Industries, India Kingdom, originally from Wanda Rapaczynski, Chair- foundations that support Brook- from coast to coast, giving them by Brookings President Strobe pendent public policy research. already providing invalu- senior officials from the Rahul Bajaj, Chairman, Bajaj Iraq man & President, Agora, ings are crucial to the Institution’s excellent opportunities to engage Talbott, conveyed what is the The Brookings endowment gen- able advice and support for Bush administration, includ- Auto Limited, India Anne Lauvergeon, Chair & ability to live up to its motto: with some of the best public essence of Brookings: a multidis- erates funding for approximately Brookings as it becomes ing Secretary of Defense James Balsillie, Chairman CEO, AREVA Group, France Nathaniel Rothschild, Independent Research Shaping policy minds in the world today, as ciplinary approach offering differ- 25 percent of the annual operat- an increasingly global think , Under & Co-CEO, Research in Frank Lowy, Chairman, West- President, Atticus Capital, the Future. well as with each other. ing opinions with no ideological ing budget, but the remaining 75 tank. They offer their diverse Secretary of Defense for Motion, Canada field Holdings, Australia United Kingdom perspectives on develop- Policy Eric Edelman, Assis- Antony Burgmans, Chairman, Philip Mallinckrodt, Global Marcus Wallenberg, Chair- ments in their own regions, tant to the President for Unilever, The Head of Corporate Devel- man, Skandinaviska A Legacy of Impact: John C. Whitehead along with candid insights National Security Affairs Gustavo A. Cisneros, Chair- opment, , PLC, Enskilda Banken AB, into how America and its Stephen Hadley, and Director man & CEO, Cisneros United Kingdom Sweden n ince its creation investment, he set an exam- deputy secretary of state; 90 years ago, in ple of leadership for other co-chairman and senior 1916, Brookings has members of the Board to partner of Goldman, Sachs & percent comes from the generous cil donors in specialized advisory Reliance Industries, State Farm, Over the past year, corporate been the benefi- follow. Whitehead designated Company, where he worked support of Brookings’s donors. As committees, creating further oppor- and Visa. The resources provided by donors had the opportunity to Sciary of the foresight and the chair for Institution-wide for 37 years; and as chair- Brookings’s leading benefactors, tunity for them to interact with these companies helped Brookings participate in a variety of events generosity of its founder, purposes. This demonstrated man of the Lower members of the Council provide scholars on vital issues. This part- to increase its capacity to conduct featuring leading policy-makers Robert S. Brookings, as his profound understanding Development Corporation the fundamental resources that nership is essential for Brookings impartial, independent research on and Brookings scholars. The First well as hundreds of other that the Institution derives from 2001 to 2006. Cur- allow the Institution to fulfill its ideas to have the greatest impact. important economic, governance, Monday Lunch series continues to benefactors who believe maximum benefit from gifts rently, he is chairman of the critical mission of independent and foreign policy questions of the be the cornerstone of the Washing- that a strong government is that provide the widest pos- World Trade Center Memorial research and innovative policy Corporate Investment in day. ton, D.C.-based Corporate Council built on sound public policy. sible latitude in their use. Foundation. solutions. The commitment of the Brookings Ideas

One such leader is John C. In 2006, when the value The Brookings Institution r k, ny new yo aphy, Brookings Council is key to the Corporate leaders have long sup- Whitehead. of the Whitehead Chair had stands on three pillars—qual- continued success of Brookings ported Brookings because they A former chairman and increased to $2.4 million, ity, independence, and impact. and its ability to provide high- value the insight and analysis that r t photog CEO of Goldman Sachs, Whitehead added a $1 mil- Whitehead affirms the impor- quality analysis and realistic policy our researchers provide on the Whitehead knew a good lion bequest to the existing tant role that scholars play in recommendations. pressing issues that affect their busi- John C. Whitehead

investment when he saw chair in recognition of the ensuring that their work has r j oe standa Individual council members ness decisions. In 1920, a group one. He became chairman sound management of the impact. “Brookings scholars public policy formation. His might be administered. seeking deeper involvement on of 92 corporate donors joined of the Brookings Board Institution under Strobe Tal- should want to influence work garnered widespread Endowment and planned specific topics also contribute piv- founder Robert S. Brookings and of Trustees in 1992. He bott. Whitehead’s generous public policy, and that means attention when Social Secu- gifts, like those made by John otal funding for projects within 12 other individuals in establishing had served on the Board act will further strengthen that they should eagerly seek rity reform was at the top of Whitehead, provide for the Brookings programs. While all a five-year sustaining fund to ensure for three years before his the financial stability of the opportunities to testify before President Bush’s domestic ongoing work of scholars such Brookings projects are essential to the Institution’s survival through election as chairman—long Institution and reinforce his Congress, to write op-ed policy agenda. Burtless has as Burtless and the long-term the policy debate, many of them its critical early years. Since then, enough to know that Brook- enduring legacy. pieces, to appear on televi- been helping the Social vitality and financial strength could not be undertaken with- we have continued to rely on the ings was well run. Whitehead has exem- sion, to be newsmakers and Security Administration of the Institution. These fun- out the support of the Brookings financial and intellectual support of Exemplifying the values plified leadership in every visible figures in the field.” develop methods for improv- damental resources have a Council. The Council’s backing the world’s leading businesses. he held then and still holds, aspect of his professional Brookings Senior Fellow ing forecasts of individual profound effect on Brookings’s guarantees that Brookings scholars Among the many companies Whitehead made an endow- life in the corporate, govern- Gary Burtless, who holds the earning over the life cycle. ability to inform the public pol- can examine major issues rang- that funded Brookings in 2006, Nemir Kirdar (left) of Investcorp speaks with ment gift of $1.5 million to ment, and nonprofit sectors. John C. and Nancy D. White- Many of his recommenda- icy debate and have an impact ing from U.S. competitiveness and several stand out for their generous Javier Solana of the Brookings in 1992 to estab- Among his many corporate head Chair, engages in public tions were incorporated into on the formation of innovative health policy, to national budgeting gifts of $100,000 or more. These at the lish the John C. and Nancy and public service accom- outreach work to ensure that the administration’s propos- public policy solutions for the and global energy security. Many donors include AT&T, Allstate, A lswang inaugural IAC meeting in May 2006.

D. Whitehead Chair. With this plishments, he served as his research becomes part of als for how private accounts nation—and the world. n Brookings initiatives include Coun- DaimlerChrysler, ExxonMobil, Ralph 28 29 Support for Brooking s Impact on Global Poverty: James D. Wolfensohn

ames D. Wolfen- program and the primary venue for global terrorism, and world investors, is another key supporter and outreach activities have estab- sohn, a member discussion with Brookings scholars. health conditions. of the work of the Metropolitan lished the center as a premier Jof the Brookings The Brookings Council Brookings scholars Policy Program. Living Cities and source of informed research on Board of Trustees Forum in New York in February expanded their work on the Metropolitan Policy Program’s education policy issues. since 1983, has seen gave corporate Council members health policy in 2006 as shared commitment to rejuvenat- The Starr Foundation has firsthand the chal- the opportunity to engage with we continued to develop ing urban neighborhoods led to a been a critical supporter of the lenges of global pov- scholars from across the Institu- plans for a center on policy development and outreach center for Northeast Asian Policy erty during his tenure tion. At the Chairman’s Lunch, health policy. Brookings project to understand the social Studies (CNAPS) since it helped as the president of which is open to major donors, gathered the nation’s lead- and economic impact of Hurricane establish the center in 1998 with the World Bank and as Board Chairman John L. Thornton ing health care experts and Katrina. Living Cities also extended a five-year, $1 million grant. In Special Envoy to the focused the discussion on China, stakeholders for a series of its generous support of the Metro- 2006, Starr renewed its commit- Middle East with the where he holds the position of forums to discuss policy politan Policy Program’s analysis of ment to Brookings’s work on the task of overseeing the professor and director of the Global and industry perspec- Census data, which provides leaders region with a two-year grant for economic rehabilita- Leadership Program at Tsinghua tives on health care costs, in the public, private, and nonprofit CNAPS activities. The Starr Foun- tion of the Palestin- University in Beijing. As with all health care rationing, and sectors with a deeper understanding dation’s grant supports research, ian territories after of our events, the active participa- employment-based insur- of the demographic dynamics of publications, conferences, and ­Israel’s disengagement tion of Council members gave ance. With the growing cities and suburbs and what those seminars in Washington and Asia, from Gaza. our scholars a chance to hear the impact of health care costs dynamics mean for policy. and provides vital resources for the Wolfensohn’s com-

real-world comments of the busi- on the bottom line, the Brookings Trustee Larry Thompson (left), Edward Ingle of Microsoft, and The Brown Foundation, CNAPS visiting fellows program, mitment to fighting ness community and respond with input of corporate lead- Mark McClellan, former administrator for the Centers for Medicare and Inc. of renewed its five- which welcomes scholars, govern- global poverty and informed analysis. ers is especially important. Medicaid Services who has joined Brookings as a visiting senior fellow. year, $1 million grant to Brook- ment officials, and journalists from improving the effec-

In September 2005, Brookings Senior executives from Eli M a r shall Cohen ings to support the Brown Center throughout Northeast Asia for tiveness of national and Goldman Sachs convened a Lilly, WellPoint, , operations. A 10-year, $1.65 million ing critical resources for projects Report on American Education. intensive residencies at our Wash- and international two-day conference in New York and Costco participated in forum grant from the Carnegie Corpora- across the Institution. Ford sup- This flagship annual publication of ington headquarters. development efforts olfensohn

on the Top 10 Financial Risks to panels and shared their experi- tion of New York enabled the Insti- ported a study of intergenera- the Brown Center on Education Brookings is grateful to all of led him to establish W . the Global Economy. Following ences and insights. tution to build and sustain research tional asset building in Ecuador, Policy effectively bridges scholar- its foundation donors for their the Wolfensohn Center D a welcome from Henry Paulson, programs addressing the pressing including conferences and papers. ship and public policy by inform- generous support of the Institu- for Development, an then-chairman and CEO of Gold- The Vital Role of Foundations issues of the post-WWI world. In The recommendations coming ing the public debate on American tion. The resources they provide integral part of the

man Sachs, scholars from Brookings Private foundations have been later years, a $5 million grant from out of this study are encouraging education and academic achieve- are a vital part of the Institution’s new Global Economy of James tesy James D. Wolfensohn

and elsewhere led panel discussions central to sustaining Brookings’s the Ford Foundation supported a rethinking of support programs ment. With the support of the ability to fulfill its commitment and Development Pro- r Cou on hedge funds and derivatives, the activities since the Institution’s continued growth of Brookings’s for the poor that can be replicated Brown Foundation, the report and to quality, independence, and gram at Brookings. The center’s mis- ment interventions. I world oil supply, wealth disparities founding. The Rockefeller Foun- programs, while another $1.2 mil- in other developing countries. the Brown Center’s other research impact. n Wolfensohn gen- sion is to conduct have seen too many in emerging economies, trade lib- dation provided funding for early lion grant from Ford supported Another Ford grant supported erously provided in interdisciplinary good initiatives wither eralization, environmental accords, studies on improving government the construction of Brookings’s economist Jeffrey Kling’s new 2005 an initial grant research on the away because of headquarters in Washington. In the work that is beginning to examine of $1 million to support central question in political and bureau- 1960s, the Ford Foundation made how families make decisions about practical, innovative, development policy: cratic obstacles and a Welcoming New Leaders a $14 million grant that helped use of Earned Income Tax Credit and action-oriented how promising inter- lack of incentives for build the Institution’s endowment (EITC) refunds, the role of the research related to ventions can be individuals and insti- he Brookings Board of Trustees is composed of distinguished and provide invaluable operating EITC in asset accumulation, and combating global successfully imple- tutions to persevere,” business executives, academics, former government officials, support over 10 years. These same perceptions of incentives due to poverty. In 2006, he mented, scaled up, Wolfensohn said. “If Tand community leaders. Trustees provide general supervision foundations continue to support the EITC. The Ford Foundation further committed and sustained to solve we are to succeed in of the Institution, approve the fields of scholarly investigation, and Brookings today. also continued to be a core sup- to raise a minimum key development chal- addressing the huge safeguard the independence of the Institution’s work. We are fortu- Brookings is grateful for the porter of Brookings’s Metropolitan of $10 million for the lenges. The new center challenges of global nate to have a strong tradition of trustee participation in the finan- long-standing support of the Policy Program, making grants for next five years and will be led by execu- poverty, demographic cial support of the Institution’s mission. We are pleased to welcome many private foundations whose research and policy development to contribute person- tive director Johannes pressures, health three new trustees to the leadership of the Institution. generosity has helped sustain the initiatives to improve the eco- ally at least half the Linn, who also guided and environmental Institution over the last 90 years. nomic, fiscal, environmental, and amount. His extraordi- its preparation for the threats, we have to Robert J. Edgar Rios Andrew H. Tisch Several made particularly impor- social health of metropolitan areas nary support enables past year. find ways to scale up Abernethy Executive Co-Chairman tant contributions to Brookings across the country. Brookings to redouble “I am pleased that and sustain projects President Vice President and of the Board this past year. Living Cities: The National Hutham Olayan, CEO of Olayan America its commitment to the the center’s research and programs over American Standard General Counsel Loews Corporation The Ford Foundation sup- Corporation, addresses the International Advisory study of poverty on a will focus on how to time. Brookings is an Development Co., Inc. UnitedHealth Group ported Brookings with nearly Initiative, a partnership of philan- Council and the Board at the May 2006 meeting, A lswang national, regional, and scale up and sustain ideal institution to including Honorary Trustee Ezra K. Zilhka (right).

$1.75 million in grants, provid- thropic, corporate, and government Ralph global scale. successful develop- take on this work.” n 30 31 honor roll of contributors honor roll of contributors

Cash Gifts Received Calthorpe Associates Visa USA, Inc. Lumina Foundation for Education The Wellington Cabot Pfizer, Inc. ConocoPhillips Japan Bank for International July 1, 2005–June 30, 2006 Canadian Department of Foreign Ezra K. Zilkha Mission of to the Foundation Prince Charitable Trusts Jay Coupe and Patrisha Davis Coupe Cooperation Affairs and International Trade Daniel B. Zwirn United States John E. Carbaugh, Esq.* LLC Gordon and Dona Crawford Michael H. The Council for the United States Robert E. Marks Cato Institute Raytheon Cummins Inc. The Kansai Electric Power Company, $1,000,000 and above and Italy $50,000 – $99,999 David Matalon Center for the New Economy Joseph L. Rice, III The Curtis Family Foundation Inc. The Brown Foundation, Inc. DaimlerChrysler Corporation Anonymous Observer Research Foundation The Chiang Ching-Kuo Foundation Rockefeller Brothers Fund The Honorable Kenneth W. Dam and James C. Kautz Annie E. Casey Foundation District of Columbia Primary Care Robert John Abernethy Maconda B. O’Connor, Ph.D. Citizens Charitable Foundation Roger W. and Victoria P. Sant and The Marcia W. Dam David Woods Kemper Memorial Ford Foundation Association Roger Agnelli, Companhia Vale do Pierce O’Donnell Ricardo Claro Valdés Summit Fund of Washington Timothy D. Dattels Foundation The William and Flora Hewlett John Doerr Rio Doce The Olayan Group The Coca-Cola Company Ralph S. Saul Marti Dinerstein Ron Kenan Foundation Doris Duke Charitable Foundation Allstate Foundation Frank H. Pearl Government of the District of Leonard D. Schaeffer The Dow Chemical Company KnowledgeWorks Foundation Living Cities, Inc. Blair W. Effron AREVA William Penn Foundation Columbia Sheldon and Elinor A. Seevak Marie L. Knowles The Bernard & Irene Schwartz Alfred and Gail Engelberg Rahul Bajaj Phoenix Satellite Television Holdings DMJM+Harris, Inc. Heidi L. Steiger Korea International Trade Association Foundation Inc. European Union, Delegation of the Geoffrey T. Boisi and The Boisi Family Limited Eli Lilly and Company Foundation Government of Switzerland Kenneth M. and Jackie F. Duberstein The Kresge Foundation John L. Thornton European Commission Foundation Samuel Pisar, Ph.D. Samuel and Leah Fischer Strobe Talbott and Richard J. Dumler Patrick J. Landers James D. Wolfensohn Exxon Mobil Corporation Charles R. Bronfman James D. Robinson, III Lawrence K. Fish The Tata Group James Elrod Liverpool John Moores University The Freeman Foundation The Morris and Gwendolyn Cafritz Sabanci University David and Marianna Fisher The Tinker Foundation, Inc. Robert F. Erburu George S. Loening $500,000 – $999,999 Mark T. Gallogly Foundation The Schroder Foundation Fondation Nationale Des Sciences Ranvir K. Trehan Alan Fleishmann and Dafna London School of Economics Anonymous Michael D. Granoff Center for Strategic & International Sejong Institute Politiques Vincent J. and Pat Trosino Tapiero Fleischmann and Lauer Marathon Oil Company Foundation Steven L. Bing William T. Grant Foundation Studies Shell Oil Company Ford Motor Company Fund University of Victoria Philanthropic Foundation The Markle Foundation Department for International Growsmart Maine Raymond Chambers and The MCJ U.S. Agency for International Forest City Enterprises Charitable The Urban Institute French Ministry of Foreign Affairs Marubeni America Corporation Development, United Kingdom The Heinz Endowments Foundation Development Foundation Enzo Viscusi David Friend MassINC The John D. & Catherine T. Glenn H. Hutchins U.S. Department of Energy Embassy of France The Wasserman Foundation Frederick P. Furth Edward J. and Dale Mathias MacArthur Foundation Alan M. Dachs U.S. Institute of Peace Mitzi and Cyrus F. Freidheim, Jr. John C. Whitehead John Lewis Furth Matsushita Electric Industrial The Pew Charitable Trusts The Marilyn and Jeffrey Katzenberg Government of Denmark Vanderbilt University GE Foundation The Gallup Organization The McGraw-Hill Companies, Inc. Foundation William A. Dunn Marcus Wallenberg General Dynamics Corporation $10,000 – $24,999 Fredric and Anne Garonzik Robert S. McNamara $250,000 – $499,999 Nemir Kirdar The Lee and Juliet Folger Fund Wal-Mart Stores, Inc. Vince G. Graham Anonymous Foundation Merrill Lynch & Co., Inc. Anonymous (2) Frank P. Lowy Foundation for Child Development WellPoint Foundation Abt Associates Inc. GlaxoSmithKline Michigan State University Carnegie Corporation of New York The McKnight Foundation Fremont Investors, Inc. Beatrice W. and Anthony Welters William A. Haseltine, Ph.D. Meena and Pierre F. and Enid Goodrich Millennium Challenge Corporation Timothy C. Collins and Ripplewood Mindich Family Foundation Bart Friedman Stephen M. Wolf Heinz Family Philanthropies Donald C. Alexander Foundation Arjay and Frances Miller Foundation, Inc. The Philip D. Murphy and Tammy S. The German Marshall Fund of the Estate of Andrew Heiskell American Bar Association Goldman, Sachs & Co. Mitsubishi International Corporation Foundation Murphy Foundation United States Roy Zuckerberg Loren W. Hershey, Esq. Joel and Nancy Andryc Mitsui & Co. (U.S.A.) Inc. Brian L. and Myra S. Greenspun and National Association of Home Fred Gluck Joel Z. Hyatt Aramco Services Company George D. Gould James Mossman the Greenspun Family Foundation Builders Stan Golden $25,000 – $49,999 Institute of International Education Liza Bailey Audrey and Arthur N. Greenberg James Murray John S. and James L. Knight Government of Richard and Rhoda Goldman Fund Anonymous (2) Investment Company Institute Richard Bartlett Jeffrey W. Greenberg National Science Foundation Foundation The David and Lucile Packard International Development Research 10,000 Friends of Pennsylvania ITOCHU International Limited BellSouth Corporation Patrick W. and Sheila Proby Gross NEC Corporation Claude R. Lambe Charitable Foundation Centre Alcoa Foundation Herbert M. Kaplan John P. Birkelund Marion Guggenheim Donald E. and Susan Newhouse Foundation Richard Perry Kenneth Jacobs Allen & Company LLC W.K. Kellogg Foundation The Consulting Group, Inc. Agnes Gund Nissho Iwai Foundation Charles Stewart Mott Foundation Victor Pinchuk The Japan Foundation Center for The Warren Alpert Foundation The Elbrun and Peter Kimmelman Bristol-Myers Squibb Foundation Robert D. Haas NTT America, Inc. Embassy of Qatar Steven Rattner and Global Partnership Altria Group, Inc. Family Foundation, Inc. Daniel Brodsky Harris Family Foundation Richard B. and Francesca Stanfill Nye The Rockefeller Foundation Reliance Industries Limited Johnson & Johnson Family of Foundation Lockheed Martin Christopher H. Browne Thomas J. Healey O’Melveny & Myers Cheryl and Nathaniel Rothschild Companies American Petroleum Institute Loeb and Loeb, LLP Conrad Cafritz June R. Hechinger Augustus K. Oliver Taipei Economic and Cultural Robert E. Rubin The Robert Wood Johnson Association of American Railroads MassMutual Cargill, Incorporated F. Warren Hellman Eiji Ono Representative Office Rutgers, The State University of New Foundation Sandy and Stewart Bainum, Jr. Eugene and Agnes E. Meyer Caterpillar Foundation Cynthia Helms John E. Osborn United Nations Jersey The Suzanne Nora Johnson & David Bank of America Foundation Foundation CIGNA Foundation E. David Hetz PACCAR Inc U.S. Chamber of Commerce Searle Freedom Trust G. Johnson Foundation Rex J. Bates Microsoft Corporation Foundation The Conrad N. Hilton Foundation Norman Pattiz Eric Smidt J.P. Morgan Chase Foundation Alan R. and Jane Batkin The Leo Model Foundation, Inc. Civil Justice Reform Group Hitachi Ltd. Pepco Holdings, Inc. $100,000 – $249,999 The Starr Foundation The Joyce Foundation Austin M. Beutner The Ambrose Monell Foundation A. W. Clausen Honda North America, Inc. John G. Popp Anonymous State Farm Insurance Companies Robert S. Kaplan Blue Moon Fund Mario M. Morino CMS Energy John and Pamela Humphrey Population Reference Bureau, Inc. Roger Altman Surdna Foundation, Inc. The Korea Foundation The Boeing Company National Bureau of Economic Coalition for Litigation Justice Francis O. Hunnewell Research Foundation - The City AT&T Tel Aviv University Edward M. Lamont BP America Inc. Research, Inc. Judith and Stewart Colton Impaq International, LLC University of New York Richard C. Blum and Senator Dianne Tokyo Club Foundation for Global Anne Lauvergeon The Cabot Family Charitable Trust NeighborWorks America Geoffrey J. Colvin Institute for Social Policy and Stanley and Louise Resor Feinstein Studies Lawrence Livermore National Louis W. Cabot Stephen G. Pagliuca The Community Foundation for the Understanding Charles W. Robinson Boston College Antoine W. van Agtmael Laboratory Charles Perez National Capital Region International Monetary Fund , Ph.D. 32 33 honor roll of contributors Brookings Institution Press

Felix and Elizabeth Rohatyn Arthur B. Culvahouse, Jr. Marie Ridder Victor R. Fuchs s the United States well received in Asia as well as reform bill into law. To commemo- new reality of modern warfare Daniel and Joanna Rose D. Ronald Daniel and Lise C. Scott Alice M. Rivlin Henry Louis Gates, Jr. marches into a in North America. According to rate the anniversary, one of the head-on. Marshall S. Ruben Judy T. Davis Ronald and Rebecca Rothstein Toby Gati precarious new the Far Eastern Economic Review, original architects of the bill and Forbes.com recently selected B. Francis Saul, II Bruce B. Dayton Frederic A. and Susan Rubinstein Greenberg Quinlan Rosner Research, era, requiring “While Mr. Bush believes that the former Ways and Means staff mem- Protecting the Homeland 2006/2007 Michael P. Schulhof Adam J. Dooley Stanley M. Rumbough, Jr. Inc. a sharper focus cross-strait dilemma may never be ber Ron Haskins published Work for inclusion in its book club. The Paul D. Schurgot Foundation, Inc. Downtown Partnership of Colorado Alan B. Slifka Lee H. Hamilton on global issues entirely resolved, his book achieves over Welfare: The Inside Story of the Written by scholars Michael Stanley S. Shuman and The Marc Haas Springs Robert Solomon Nancy M. Hewett, Ph.D. and a greater understanding of its objective of clarifying the dis- 1996 Welfare Reform Law. Haskins’s d’Arcy, Michael O’Hanlon, Peter Foundation DTE Energy Foundation Alan D. Solomont The Hillman Company Agovernment actions, the Brook- pute and steering readers away book tells the inside story of the Orszag, Jeremy Shapiro, and James Kenneth Siegel Charles W. Duncan, Jr. Helmut Sonnenfeldt Ann and Vernon E. Jordan, Jr. ings Institution continues to pres- from dangerous misassumptions.” legislation that ended “welfare as Steinberg, the book reviews the J.T. Smith, II William C. Eacho Myron Sponder Douglas Kiessling ent comprehensive research and Domestically, Brookings con- we know it” and provides the most current state of homeland security, Robert and Emily Smith The Friedrich Ebert Foundation Frederick Stavis Cheng-san and A. Hsueh Lee unique points of view to simplify tinued to aid local leaders and authoritative account on welfare assesses the nation’s remaining vul- Samuel M. and Helene K. Soref Kay Enokido and Thomas C. Crouse Tallberg Foundation Herbert S. Levine the complex, changing world. urban planners with insightful, to date. nerabilities, and suggests new poli- Foundation Elinor Farquhar Larry D. Thompson Wayne P. Limberg Brookings scholars—writ- cies to improve security in the Andrew P. and Patricia Steffan of Boston University of Pennsylvania Frank E. Loy ing in a style that reaches the United States. Sumitomo Corporation Nancy M. Folger Paul Verbinnen Bruce K. and Virginia N. MacLaury public as well as other scholars Choice named two new Taiwan Semiconductor Education and Ann M. Fudge E. Denis Walsh David O. Maxwell and academics, and offering Brookings Press books as Out- Culture Foundation Jeffrey C. Gore The Washington Post Company Donald F. McHenry practical approaches to policy standing Academic Titles: The Nelson Talbott Morton E. Goulder Robert M. Weekley Mary Patterson McPherson roadblocks—maintained the Idea of Pakistan, by Senior Fellow Chandrika Tandon Eric Weinmann Mutual of America Institution’s pre-eminence Stephen Cohen, and National Toshiba America, Inc. John Gutfreund Malcolm H. Wiener John Newhouse over analysis of topics rang- Pastime, by economists Stefan Toyota Miriam and Peter Haas Fund Rochelle and Jay R. Novins, M.D. ing from domestic policy to Szymanski and Andrew Zimbal- Ellie Trowbridge Edmund A. and Barbara Hajim $4,999 and below Henry J. Oechler, Jr. foreign policy, and from urban ist. The magazine called Cohen’s Andrew K. Tsai Henry and Nancy Hamlin Anonymous (1) John F. Olson affairs to global affairs. work “a lucid, penetrating and Tudor Investment Corporation Samuel Hellman, M.D. Henry J. Aaron William A. Owens In fiscal 2006, Brookings brilliantly constructed book on United Nations Development Robert A. Helman Agir Limited Jason M. Palmer published 51 new books by the state and nation of Pakistan.” Programme Harold Hestnes Alsar Co. Philip W. Pillsbury, Jr. scholars and outside experts. , Joel S. University of Maryland Frank Hoch Gerald and Jan Aronson Samuel Plimpton and Wendy Shattuck These books covered a wide Wit, and Daniel Poneman University of North Carolina at Roy M. Huffington Maqbool Arshad and Rafut Naheed Fund range of issues, including won the American Academy Chapel Hill Martin D. Jacobson Arshad John Edward Porter the rationing of health care; of Diplomacy’s Douglas Dillon Ann and Mel Woods John R. Jakobson Anders Aslund John M. Prizer cross-strait relations; metro- Award for Going Critical: The The World Bank Nicholas Jakobson Elizabeth E. Bailey William Quandt politan urban and suburban First North Korean Nuclear Crisis. Wyeth The Fletcher Jones Foundation Jeffrey E. Barrett Alfred Reifman challenges; corporate social The award goes to a “book of The Xerox Foundation Douglas M. Kaden Yahya Basha Bonnie and Richard Reiss responsibility, homeland distinction in the practice of Daniel H. Yergin and Thomas L. Kempner Sherri Berman and Gideon Rose Dorothy P. Rice security concerns and the American diplomacy.” The F.M. Kirby Foundation, Inc. Michele D. Bertrand Justin Rockefeller adequacy—or inadequacy—of For the second year in a row, $5,000 – $9,999 Richard Klausner Consulting Cabell and Shirley Brand Warren B. Rudman policies designed to address Brookings Press won the top AFL-CIO Working for America Robert P. and Arlene R. Kogod Brodsky Family Foundation Henry B. Schacht them; the oil industry; foreign literary prize in public adminis- Institute Harold H. Koh John Buchanan Doug Schoen correspondents; regulatory tration, the Academy of Public American Legacy Foundation Marc E. Leland Daniel J. Callahan, III Francis H. Schott reform; and competitiveness. Administration’s Louis Bronlow American Society of the French Toby Devan Lewis John P. Ceserani Glenn E. Schweitzer Richard Bush, director Award, for Government by Net- Legion of Honor James T. and Joan M. Lynn Stephen C. and Louisa Y. Chen Robert M. and Barbara L. Solow of Brookings’s Center for work: The New Shape of the Public Automatic Data Processing, Inc. City of Madison, Kathryn D. Christopherson Joan E. Spero Northeast Asian Policy Studies, guideline-oriented publications. The high quality of Brookings Sector, by Stephen Goldsmith and The Bank of Tokyo-Mitsubishi UFJ Waleed S. Najeeb Claritas, Inc. Linda G. Steckley and Peter Weitzel published Untying the Knot: Mak- Bruce Katz and Robert Puentes, books was recognized by a number William D. Eggers. Ernest A. Bates, M.D. National Council of Applied Morton and Shirley Cohen Jane P. and David S. Stern ing Peace in the Taiwan Strait in of the Brookings Metropolitan of prestigious awards: The Brookings Press contin- Robert Berne Economic Research The Colony Club Lawrence H. Summers July 2005. Bush’s book explores Policy Program, edited Taking the Scholar Peter W. Singer received ues to play a key role in achieving Carol and Frank J. Biondi Peter and Sarah O’Hagan Creative Artists Agency David F. Swensen the significant differences and High Road: A Metropolitan Agenda distinguished honors from the goals important to the Institution Anders Brag Owens-Illinois, Inc. Dalio Family Foundation Laura D’Andrea Tyson many similarities between China for Transportation Reform. The book Robert F. Kennedy Memorial this and its mission. By providing the Rhoda W. Brownstein The Ralph M. Parsons Foundation Vishakha N. Desai Union Pacific Corporation and Taiwan and the difficulties made Planetizen magazine’s recent year for Children at War. Singer’s bridge between scholarship and William M. Cameron Alan and Susan Patricof Draper and Kramer Foundation Frank Weil that must be resolved to calm top 10 list of books in planning book is the first comprehensive policy-making, the Press offers Ellen Chesler and Matthew J. Mallow Principal Financial Group Foundation, Stewart E. and Frances C. Eizenstat YMCA of Metropolitan Washington the Taiwan Strait given growing and development. analysis of the growing global use the opportunity for scholars and Karen and Everett R. Cook Inc. Walter Y. Elisha military power in Asia. Reflecting This year also marked the of children as soldiers and why the outside experts to reach decision- Corning Incorporated Foundation Procter and Gamble Company Environmental Systems Research Brookings’s expanding interna- 10-year anniversary of President U.S. government and the interna- makers and inform public debate Coventry Health Care, Inc. J. Woodward Redmond Institute *deceased tional reach, Untying the Knot was Clinton’s signing of the welfare tional community must face this through innovative thought. n 34 35 Impact in Action: Brookings Scholars Testify on Capitol Hill

Center for Executive Education ounder Robert national community could Isabel V. Sawhill, In a year when President Brookings scholars S. Brookings most effectively assist in another senior fellow, has Bush made U.S. competi- often find ways other than believed that post-conflict reconstruction testified relentlessly on the tiveness a centerpiece of testimony to reach law- rom Robert S. Thomas Mann, Peter Orszag, and program, which brings state appel- Sens. Hillary Clinton of New the Institution’s and aid. issue of fiscal responsibil- the nation’s agenda, Brook- makers. Andrew Reamer, Brookings’s service Susan Collins, as well as professors late and Supreme Court judges York, Orrin Hatch of Utah, Larry Fscholars must frame the On numerous occasions ity and need for the long- ings was very much on top deputy director of the Urban on President Wood- from universities and congressional from all over the country to Wash- Craig of Idaho, and Edward M. issues of the day accurately during the year, Senior Fel- term health of the nation’s of that issue. To aid Con- Markets Initiative, has, like row Wilson’s War members and staffers who share ington for two weeks of seminars Kennedy of Massachusetts. and impartially, “presenting lows Kenneth Pollack and entitlement programs. “Like gress’ understanding of the the Institution as a whole, Industries Board their real-world policy-making on such complex economic issues Of course, the best way to ideas without ideology.” That Michael O’Hanlon brought many others, I worry that subject matter, two senior made innovative use of during World War experience. as punitive damages and construc- gauge the success of BCEE is to goal has guided 90 years of their expertise to bear on currently projected deficits fellows—Lael Brainard, cyberspace. In a Web-based I, the St. Louis businessman con- Former director Lee Fritschler tion-defects litigation. The goal, listen to the executives who have Brookings counsel to policy- Congress’ inquiries into are a grave threat to our vice president and direc- editorial, he argued against Fcluded that there was a shortage recalled that in the 1980s, the Goodwin said, is “to educate been through the program. makers who seek solutions the war in Iraq and policy economy,” she told the tor of the Global Economy cutting the Census Bureau’s of staff members “fitted by educa- number of to the nation’s most complex toward the Middle East in Senior Fellow Alice Rivlin testifies tion and experience” to perform business execu- Sen. Orrin Hatch of Utah policy challenges. general. Pollack also helped on the District of Columbia’s essential government work during tives attending One effective means legislators and policy mak- progress to the Senate Committee a crisis. Further investigation con- the program for Brookings to influence ers who were dealing with on Homeland Security and Governmental Affairs at a July vinced him that universities were expanded, par- policy and legislation is the nuclear challenge posed hearing. teaching the theory of govern- ticularly from congressional testimony. by Iran, while O’Hanlon ment service, but not the practice. the telecom- This year Congress repeat- addressed the looming issue Therefore, in 1924, he estab- munications, edly asked Brookings schol- of weapons in space. lished the Robert Brookings health care, ars to help them understand Senior Fellow Thomas Graduate School of Economics and energy the challenges facing the E. Mann, one of the most and Government to help federal industries. Also nation and weigh alterna- respected experts on executives acquire “the trained beginning in tive policies. Despite politi- politics and election reform, intelligence essential to the ulti- that period, cal polarization, lawmakers appeared before the House mate success of government.” The executives of both major parties found Rules Committee as it inaugural class comprised 30 men attending the Brookings a source of fact- addressed congressional and women. program were based, responsible analysis oversight of the lobbying The school was the forerun- taken abroad and recommendations. industry. “Transparency ner of today’s Brookings Center to familiarize In the past year, Brook- is key to lobbying reform, for Executive Education (BCEE). them with the ings scholars testified in my view more impor- “The leadership development workings of more than 40 times on a tant than a ban or further emphasis of BCEE’s executive foreign govern- wide range of topics. These restrictions on gifts and on education program resurrects the ments. Execu- included lobbying reform, travel,” Mann told the law- t s

original intent of the training tives from ge economic competitiveness, makers, as they considered function of Brookings,” said Terry Korea, China, relief for internally displaced new regulations. Jo h n H a rr i ng Goodwin, BCEE director. and Japan G e tt y Im a persons and refugees, Ron Haskins, a senior The program was known began traveling to the United judges to make better decisions.” “The LEGIS Fellows program domestic entitlements, fellow, was a key architect by a variety of names over the States to attend the program at Goodwin said that BCEE plays provides the kind of hands-on, changes in society, the Dis- of the 1996 welfare reform House Committee on the and Development Program, budget and explained that decades, and until 1936, attend- Brookings. a vital role in training and certify- in-depth experience that helps to trict of Columbia’s govern- legislation as a staffer on Budget. and Barry Bosworth, both with accurate demographic ees could earn doctoral degrees Nanette Blandin, another for- ing a new generation of govern- demystify the world of congres- ment, the estate tax, Social the House Ways and Means Alice Rivlin, director testified before the Sen- data, state and local law at Brookings. This year, nearly mer director, noted that during ment executives needed to replace sional politics and policy,” said Security, preparedness in the Committee. Ten years after of the Brookings Greater ate Finance Committee. enforcement can create 3,000 executives attended more her era, Brookings began to design the current generation, which will Elain Dezinski, who participated face of bio-terrorism, and President Clinton signed Washington Research Pro- Brainard argued that the effective programs for com- than 70 BCEE programs, most customized executive education retire soon. in the program when she was homeland security. welfare reform into law, gram, appeared before an United States was not sav- bating growing crime areas. of them lasting at least five days. programs to meet the specific An important BCEE pro- Department of Homeland Secu- In September, just after Haskins returned to that oversight subcommittee of ing enough to be competi- Reamer thought it inexcus- About 85 percent of the attendees needs of individual companies, gram, the LEGIS Fellows project, rity deputy assistant secretary for the ceasefire in Lebanon same committee to tes- the Senate Committee on tive. She said, “To remain able to cut back on this are government executives; the such as State Farm Insurance, presents three weeks of orienta- policy and planning in the Border went into effect, Carlos tify on the origins of the Homeland Security and Gov- competitive, America must “crime-mapping” system, remaining 15 percent are from Boeing, and IBM. BCEE tailored tion courses on “How Congress and Transportation Directorate. Pascual, vice president and welfare reform law and its ernmental Affairs in July invest. And to invest, ulti- and so did some members business. Most of the programs programs for other organiza- Works” to executives from gov- “A great opportunity to director of Foreign Policy effects on employment, 2006 to praise the District’s mately America must save.” of Congress. His piece was take place in Washington, D.C., tions—such as the Credit Union ernment agencies, and then places develop a foundation in politics Studies, undertook a fact- poverty, marriage, and renaissance. “Thousands of Bosworth had a different circulated in a “Dear Col- but other locales include Belgium, Executives Society, the Dutch them on the staffs of senators and and policy-making, essential to finding trip. Immediately on teen pregnancy. Haskins units of housing are being view, explaining, “We are league” letter from members the Netherlands, , , embassy, and a Finnish think House members for stints of seven any future career executive,” said his return to Washington, concluded that in the last constructed and renovated, in the midst of a domestic of the House Census Bureau Charlottesville, Va., and Warrenton, tank—and groups, such as senior to 12 months. “These are very Gregory Kay, who attended sev- he went before the Senate several decades of social new stores are opening boom with very low rates Oversight Subcommittee, Va. officials from the United Arab well qualified executives,” Good- eral BCEE programs as director Foreign Relations Commit- policy, “Welfare reform and older ones expanding. of unemployment, and we and Rep. Alan Mollohan of The “faculty” includes such Republic. win noted, “the up-and-comers.” of strategic services at the Internal tee to lay out his findings stands out as federal legis- Neighborhoods are showing could not possibly support West Virginia specifically Brookings scholars as Michael Among the specialized BCEE Last year, Brookings LEGIS Revenue Service office in Fresno, and suggest ways that the lation that actually met its new signs of life all over the our spending out of our own cited Reamer’s work during O’Hanlon, E.J. Dionne, Jr., courses is the Judicial Education Fellows served on the staffs of Calif. n United States and the inter- goals.” city,” she said. productive resources.” debate on the House floor. n 36 37 STATEMENTS OF ACTIVITIES STATEMENTS OF FINANCIAL POSITION Years Ended June 30, 2006 and 2005 (in thousands) As of June 30, 2006 and 2005 (in thousands) (Unaudited) (Unaudited)

t TEmporarily permanently 2006 2005 2006 2005 un UNREsTRICTED REsTRICTED REsTRICTED Total total Operating Revenues Assets Investment return designated for operations $ 11,096 $ 11,096 $ 10,653 Cash and cash equivalents $ 8,347 $ 7,689 Grants and contracts 1,265 $32,896 34,161 28,704 Accounts receivable 1,857 2,520 Contributions 3,466 (7) 3,459 3,307 Grants and contracts receivable 26,536 23,368 Conferences 4,230 4,230 4,015 Pledges receivable 1,102 1,320 Brookings Institution Press 2,533 2,533 2,502 Accrued interest and dividends 514 477 Information Technology Services 25 25 38 Inventory 562 634 Interest and dividends 157 157 46 Investments, at fair value 251,199 231,927 Rental income, net 144 144 148 Land, buildings and equipment-net 11,358 11,968 Visiting scholars 100 100 329 Other assets 616 305 Other income 7 7 42 TOTAL ASSETS $302,091 $280,208 Net assets released from restrictions- 0 Grants and contracts 27,194 (27,194) 0 0 Liabilities Total Operating Revenue 50,217 5,695 55,912 49,784 Accounts payable and accrued expenses $ 3,157 $ 3,101 Accrued compensated leave 1,685 1,614 Operating Expenses Accrued post-retirement benefits 4,620 4,530 Operating programs Note payable 194 650 Economic Studies 7,598 7,598 6,949 Deferred revenue 550 Fg\iXk`e^I\574m\el\j Foreign Policy Studies 11,130 11,130 8,802 TOTAL LIABILITIES 10,206 10,469 Governance Studies 1,864 1,864 1,810 -( >`]kjXe[>iXekj metropolitan Policy 5,876 5,876 4,312 Net Assets other research 233 233 258 Unrestricted 203,883 186,944 ) Center for Executive Education 5,133 5,133 4,682 Temporarily restricted 40,238 34,543 >fm\ied\ek Brookings Institution Press 2,709 2,709 3,088 Permanently restricted 47,764 48,252 ( Communications 1,113 1,113 891 Total Net Assets 291,885 269,739 D`jZ\ccXe\flj

Global Economy and Development 2,839 2,839 1,110 TOTAL LIABILITIES AND NET ASSETS $302,091 $280,208 , Total Operating Programs 38,495 38,495 31,902 GlYc`ZXk`fej

Supporting services: 0 Management and General 9:<< Information Technology Services 2,673 2,673 2,614 )) Administration 5,022 5,022 4,257 `]kjXe[>iXekj ( publicly supported organization under section Fk_\iI\j\XiZ_

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John L. Thornton Teresa Heinz Antoine W. van Agtmael Robert D. Haas Mario M. Morino Chair of the Board Chairman President and CIO Chairman of the Board Chairman The Brookings Institution Heinz Family Philanthropies Emerging Markets Management, Levi Strauss & Co. Venture Philanthropy Partners LLC Strobe Talbott Samuel Hellman M.D. Lee H. Hamilton Maconda Brown O’Connor, Ph.D. President A.N. Pritzker Distinguished Beatrice W. Welters President and Director Trustee The Brookings Institution Service Professor Founder The Woodrow Wilson International The Brown Foundation, Inc. The The An-Bryce Foundation Center for Scholars Robert J. Abernethy Samuel Pisar, Ph.D. President Glenn Hutchins William A. Haseltine, Ph.D. International Lawyer American Standard Development Founder and Managing Partner Chairman President New York and Paris Co., Inc. Silver Lake Partners Cambridge Energy Research The Haseltine Foundation Associates Chairman J. Woodward Redmond Zoë Baird Joel Z. 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